1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," providing for a personal income tax credit for
11long-term care premiums paid by individuals; and imposing
12duties on the Secretary of the Commonwealth and the
13Legislative Reference Bureau.

14The General Assembly of the Commonwealth of Pennsylvania
15hereby enacts as follows:

16Section 1.  Section 301 of the act of March 4, 1971 (P.L.6, 
17No.2), known as the Tax Reform Code of 1971, is amended by
18adding a clause to read:

19Section 301.  Definitions.--Any reference in this article to
20the Internal Revenue Code of 1986 shall mean the Internal
21Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.),
22as amended to January 1, 1997, unless the reference contains the

1phrase "as amended" and refers to no other date, in which case
2the reference shall be to the Internal Revenue Code of 1986 as
3it exists as of the time of application of this article. The
4following words, terms and phrases when used in this article
5shall have the meaning ascribed to them in this section except
6where the context clearly indicates a different meaning:

7* * *

8(l.3)  "Long-term care policy" means a policy for long-term
9care insurance as those terms are defined in section 1103 of the
10act of May 17, 1921 (P.L.682, No.284), known as "The Insurance
11Company Law of 1921."

12* * *

13Section 2.  The act is amended by adding a section to read:

14Section 314.1.  Long-Term Care Policy Premiums.--(a)  A
15resident taxpayer shall be allowed a credit against the tax
16imposed by this article in an amount equal to the lesser of
17twenty per cent of any premiums paid during the taxable year by
18the taxpayer for a long-term care policy for the taxpayer, the
19taxpayer's spouse, or both, or five hundred dollars ($500).

20(b)  The credit provided under this section shall not exceed
21the amount of the tax otherwise due under this article.

22Section 3.  The addition of sections 301(l.3) and 314.1 of
23the act shall apply to taxable years beginning after December 31
24of the year immediately preceding the calendar year in which the
25constitutional amendment indicated in section 4 of this act is
26approved by the electorate.

27Section 4.  If a constitutional amendment authorizing a
28personal income tax credit for long-term care premiums is
29ratified, the Secretary of the Commonwealth shall, immediately
30after tabulating and computing the returns of the ratification

1election, certify the result to the Legislative Reference Bureau
2for publication as a notice in the Pennsylvania Bulletin.

3Section 5.  This act shall take effect as follows:

4(1)  The addition of section 314.1 of the act shall take
5effect upon publication of the notice under section 4 of this
6act.

7(2)  The remainder of this act shall take effect
8immediately.