SB 1552 Summary

• Removes California exceptions to federal Internal Revenue Code provisions regarding qualified long-term care insurance, conforming state tax law to federal tax law effective January 1, 2012.

• Amends Section 17020.6 to apply federal Section 7702B of the Internal Revenue Code (treatment of qualified long-term care insurance) without state-specific exceptions.

• Repeals Section 18037.5 and Section 24950.5, which previously exempted California from federal amendments made by Section 844 of the Pension Protection Act of 2006 regarding long-term care insurance contracts.

• Amends Section 18631 to require reporting of information returns related to charges or payments for qualified long-term care insurance contracts under combined arrangements (Section 6050U of the Internal Revenue Code).

• Takes effect immediately as a tax levy under Article IV of the California Constitution.