[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2492 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2492

To amend the Internal Revenue Code of 1986 to allow a deduction for the 
long-term care insurance costs of all individuals who are not eligible 
   to participate in employer-subsidized long-term care health plans.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 17, 1998

  Mr. Grassley (for himself and Mr. Graham) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to allow a deduction for the 
long-term care insurance costs of all individuals who are not eligible 
   to participate in employer-subsidized long-term care health plans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Long-Term Care and Retirement 
Security Act of 1998''.

SEC. 2. DEDUCTION FOR LONG-TERM CARE HEALTH INSURANCE COSTS FOR 
              INDIVIDUALS NOT ELIGIBLE TO PARTICIPATE IN EMPLOYER-
              SUBSIDIZED LONG-TERM CARE HEALTH PLANS.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions) is amended by redesignating section 222 as section 223 and 
by inserting after section 221 the following new section:

``SEC. 222. QUALIFIED LONG-TERM CARE INSURANCE COSTS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a deduction an amount equal to the amount of the eligible 
long-term care premiums (as defined in section 213(d)(10)) paid during 
the taxable year for coverage of the taxpayer and the spouse and 
dependents of the taxpayer.
    ``(b) Limitation Based on Other Coverage.--Subsection (a) shall not 
apply to any taxpayer for any calendar month for which the taxpayer is 
eligible to participate in any subsidized long-term care plan 
maintained by any employer of the taxpayer or of the spouse of the 
taxpayer. For purposes of the preceding sentence, the term `subsidized 
long-term care plan' means a subsidized health plan which includes 
primarily coverage for qualified long-term care services (as defined in 
section 7702B(c)) or is a qualified long-term care insurance contract 
(as defined in section 7702B(b)).
    ``(c) Special Rules.--
            ``(1) Coordination with medical deduction.--Any amount paid 
        by a taxpayer for insurance to which subsection (a) applies 
        shall not be taken into account in computing the amount 
        allowable to the taxpayer as a deduction under section 213(a).
            ``(2) Deduction not allowed for self-employment tax 
        purposes.--The deduction allowable by reason of this section 
        shall not be taken into account in determining an individual's 
        net earnings from self-employment (within the meaning of 
        section 1402(a)) for purposes of chapter 2.''
    (b) Conforming Amendments.--
            (1) Subparagraph (C) of section 162(l)(2) of such Code is 
        amended to read as follows:
                    ``(C) Long-term care premiums.--No deduction shall 
                be allowed under this subsection for premiums on any 
                qualified long-term care insurance contract (as defined 
                in section 7702B(b)).''
            (2) Subsection (a) of section 62 of such Code is amended by 
        inserting after paragraph (17) the following new paragraph:
            ``(18) Long-term care insurance costs of certain 
        individuals.--The deduction allowed by section 222.''
            (3) The table of sections for part VII of subchapter B of 
        chapter 1 of such Code is amended by striking the last item and 
        inserting the following new items:

                              ``Sec. 222. Qualified long-term care 
                                        insurance costs.
                              ``Sec. 223. Cross reference.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1997.
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