Employers who provide long-term care insurance as part of an employee benefit package may claim a credit for costs incurred.

The credit may be taken against corporate income tax, personal income tax, insurance premiums tax or public service company franchise tax. The same credit may not, however, be applied to more than one tax type.

Sole proprietorships, corporations and pass-through entities, such as partnerships, subchapter S corporations, limited liability companies and business trusts may claim the tax credit.

To Qualify For The Credit

The company must provide long-term care insurance benefits to one or more employees during the tax year as part of an employee benefit package.

How The Credit Is Calculated:

The credit allowed is 5 percent of the costs. The total claimed for a tax year for all employees may not exceed $5,000, or $100 per employee, whichever is less.

If the credit is more than the tax liability, the unused credit may be carried forward for the next five years.

For More Information, Contact:

Revenue Administration Division, Comptroller of Maryland

(410)260-7980 from central Maryland

1-800-MD TAXES from elsewhere

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