# COMAR Title 03 — Comptroller of the Treasury

## Subtitle 04 — Income Tax

### Chapter 09 — Credit for Employer-Provided Long-Term-Care Insurance

**Authority:** Tax-General Article, §2-103, Annotated Code of Maryland

**Administrative History:** Effective date: January 24, 2000 (27:1 Md. R. 74)

**Administrative History:** Regulation .01B amended effective April 19, 2010 (37:8 Md. R. 614)

**Administrative History:** Regulation .03B amended effective October 9, 2006 (33:20 Md. R. 1613)

#### Regulation .01 Definitions.

*COMAR 03.04.09.01*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Long-term-care insurance” has the meaning stated in Insurance Article, §18-101(f), Annotated Code of Maryland.

  (2) “Employer” has the meaning stated in §3401(d) of the Internal Revenue Code.

  (3) “Employee” means an individual who is employed in this State.

#### Regulation .02 Credit Allowed.

*COMAR 03.04.09.02*

Subject to the limitations in Regulation .03 of this chapter, an employer may claim a credit equal to 5 percent of the costs incurred by the employer during the taxable year to provide long-term-care insurance as part of an employee benefit package.

#### Regulation .03 Limitations.

*COMAR 03.04.09.03*

A. The credit in Regulation .02 of this chapter may not exceed the lesser of:

  (1) $5,000; or

  (2) $100 multiplied by the number of employees covered by long-term-care insurance provided under the employee benefit package.

B. The credit in §A of this regulation and in Regulation .02 of this chapter is not allowed to any employer who claims a credit for the same expenses against the public service company franchise tax.

#### Regulation .04 Exempt Organizations.

*COMAR 03.04.09.04*

If an employer is an organization that is exempt from taxation under §501(c)(3) or (4) of the Internal Revenue Code, then the credit under this chapter may be taken against the State income tax due on unrelated business taxable income as provided under Tax-General Article, §§10-304 and 10-812, Annotated Code of Maryland.

#### Regulation .05 Carryover of Excess Credit.

*COMAR 03.04.09.05*

If the credit allowed under this chapter in any taxable year exceeds the total of tax otherwise payable by the employer for that taxable year, the employer may apply the excess as a credit for succeeding taxable years until the earlier of:

A. The full amount of the excess is used; or

B. The expiration of the fifth taxable year after the taxable year in which the costs to provide long-term-care insurance as part of an employee benefit package were incurred.