July 21, 1999


RE: Act 270, Session Laws of Hawaii 1999 (Act 270) , Relating to Long-Term Care Tax Benefits

Act 270 adopts the federal deduction for long-term care costs and insurance contract premiums for taxable years beginning after December 31, 1998.

Act 270 conforms Hawaii's income tax law to the federal deduction under Internal Revenue Code section 213 for long-term care costs and insurance contract premiums paid for taxpayers and their dependents effective for taxable year 1999. Conformity to the Internal Revenue Code simplifies Hawaii's income tax law and provides income tax relief to unfortunate taxpayers burdened with these expenses. Act 270 is based upon a measure first introduced by Governor Cayetano's administration in 1997.

Forms and other tax information may be downloaded from the Department's website at: http://www.state.hi.us/tax/tax.html. On Oahu, forms may be ordered by calling the Department's Forms Request Line at: 587-7572. Persons who are not calling from Oahu may call: 1-800-222-7572 to receive forms by mail or 808-678-0522 from a fax machine to receive forms by fax.

Director of Taxation