Senior Housing Income Tax Credit

Legislative Oversight Committee Concerning Tax Policy. Section 2 of the bill 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 $150,000 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:

• $1,000 for a qualifying senior filing a single return with federal AGI that is $25,000 or less. For every $500 of AGI above $25,000, the amount of the credit is reduced by $10.
• $1,000 for a qualifying senior filing a joint return with another individual who is not a qualifying senior with federal AGI that is $50,000 or less. For every $500 of AGI above $50,000, the amount of the credit is reduced by $10.
• $2,000 for a qualifying senior filing a joint return with another qualifying senior with federal AGI that is $50,000 or less. For every $500 of AGI above $50,000, the amount of the credit is reduced by $10.

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 requires the property tax administrator to provide reports from counties related to taxpayers who are eligible for and actually claim the homestead property tax exemption.
(Note: This summary applies to this bill as introduced.)