For tax years beginning on or after January 1, 2005, Tax Law
section 606(hh) allows a credit against the personal income
tax for the amount of the assessment imposed on a New York
residential health care facility pursuant to Public Health Law
section 2807-d(2)(b) and paid directly by an individual. The
assessment must be separately stated and accounted for on the
billing statements or other statements of a resident of a residential health care facility, and must be paid directly by the individual taxpayer claiming the credit.
If an individual other than the resident is actually paying the assessment, the individual who paid the assessment, not the resident, is entitled to claim the credit.
This credit is only available to individuals who directly paid the assessment. An individual may claim the full credit for amounts directly paid even though the resident may be receiving benefits from a long-term care insurance policy. If a resident of a facility assigns his or her long-term care insurance benefits to a residential health care facility, the resident is treated as having paid that amount toward the total nursing home bill. The credit is not available if the assessment is paid through private health insurance, with public funds (such as medicaid), or by a trust or other entity.