Senior Housing Income Tax Credit

Section 2 of the act reinstates a refundable income tax credit (credit) that was available for the income tax year commencing on January 1, 2022, so that the credit is available for the income tax year commencing on January 1, 2024, and is available in a different amount to joint-filers. The credit is for a qualifying senior, which means a resident individual who:

• Is 65 years of age or older at the end of 2024;
• Has federal adjusted gross income (AGI) that is less than or equal to $75,000 if filing a single return, or less than or equal to $125,000 if filing a joint return; and
• Has not claimed the senior property tax exemption for the 2024 property tax year.

The amount of the credit is:

• $800 for a qualifying senior filing a single return with federal AGI that is $25,000 or less. For every $500 of federal AGI above $25,000, the amount of the credit is reduced by $8.
• $800 for 2 taxpayers filing a joint return with federal AGI that is $25,000 or less. For every $500 of federal AGI above $25,000, the amount of the credit is reduced by $4.
• $400 for each taxpayer, in the case of 2 taxpayers who share the same primary residence and who may legally file a joint return but actually file separate returns, if both taxpayers claim the credit. For every $500 of federal AGI above $25,000, the amount of the credit is reduced by $4.

Notwithstanding the income-based reductions in the allowable credit amount, a taxpayer who also qualifies for a property tax and rent assistance grant or heat assistance grant during calendar year 2024 is eligible to receive the full credit amount.

Section 1 of the act requires the property tax administrator to provide reports from counties related to taxpayers who are eligible for and actually claim the senior property tax exemption.

APPROVED by Governor June 6, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)