SENATE STATE GOVERNMENT COMMITTEE

STATEMENT TO

SENATE, No. 496

STATE OF NEW JERSEY

DATED: MAY 9, 1996

      The Senate State Government Committee reports favorably Senate, No. 496.

      This bill creates a corporation business tax credit for 50% of any costs incurred by an employer which are related to providing a long-term care insurance policy to employees. The credit claimed in the tax year in which the cost is incurred cannot exceed 50% of the tax liability which would be otherwise due and cannot reduce the employers' tax liability below the minimum tax.

      Long-term care insurance is defined in the bill as any policy which provides benefits for a period of not less than 12 months for each person covered under the policy on expenses incurred for diagnostic, preventive, therapeutic or custodial services in or by a duly licensed home health agency, intermediate nursing facility, or nursing care facility.