AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR CERTAIN PAYMENTS RECEIVED FROM AN INSURANCE COMPANY.

HB 5144 would allow taxpayers to deduct from their state personal income tax the portion of money received from an insurance company when canceling or buying out a long-term care insurance policy, *if* that payment is already taxable under federal income tax rules. This affects individuals who terminate long-term care insurance policies and receive payout payments. The bill creates a specific state tax deduction for the federal-taxable portion of such insurance buyout payments. It does not change federal tax treatment but provides a state-level adjustment for amounts already included in federal gross income.