NY S09158

Exempts distributions from individual retirement accounts (IRAs) and individual retirement annuities from New York state personal income tax when used to purchase long-term care insurance for the taxpayer or their dependent.

Includes distributions from self-employed individual and owner-employee retirement plans qualifying under Internal Revenue Code Section 401 in the exemption.

Requires that any excluded distributions be subtracted from total premiums paid when calculating the long-term care insurance credit under Tax Law Section 606(aa).

Modifies the long-term care insurance credit calculation to reduce the premium amount by any distributions excluded under the new provision, resulting in a recalculated 20 percent credit based on the reduced premium amount.

Takes effect immediately and applies to all taxable years beginning January 1st in the year of enactment and thereafter.