Financial Assistance for Certain Low-Income Individuals

The act modifies the "Property Tax/Rent/Heat Credit Rebate" (PTC),which is available to qualifying seniors and individuals with a disability who earn income below a threshold amount and who pay real property tax, or a tax equivalent through rent, or heat or fuel expenses, or an equivalent through rent, by:

• Merging the separate statutory sections that provide the PTC for assistance in the payment of real property tax and provide the PTC for assistance in the payment of heat or fuel expenses into a single statutory section;
• Updating certain dollar values used to calculate the PTC to their current levels; and
• For tax years commencing on or after January 1, 2025, allowing the PTC only to qualifying seniors.

Qualified individuals with a disability for tax years commencing on or after January 1, 2025, are allowed an income tax credit. Eligibility with respect to disability mirrors the eligibility as it exists under current law for the PTC. The income tax credit is allowed in the following amounts:

• $1,200 for a qualified individual filing a single return with federal adjusted gross income less than or equal to $10,000 or for 2 qualified individuals, or a qualified individual and a nonqualified individual, filing a joint return with federal adjusted gross income less than or equal to $16,000;
• $1,000 for a qualified individual filing a single return with federal adjusted gross income between $10,001 and $12,500 or for 2 qualified individuals, or a qualified individual and a nonqualified individual, filing a joint return with federal adjusted gross income between $16,001 and $20,000;
• $800 for a qualified individual filing a single return with federal adjusted gross income between $12,501 and $15,000 or for 2 qualified individuals, or a qualified individual and a nonqualified individual, filing a joint return with federal adjusted gross income between $20,001 and $24,000;
• $600 for a qualified individual filing a single return with federal adjusted gross income between $15,001 and $17,500 or for 2 qualified individuals, or a qualified individual and a nonqualified individual, filing a joint return with federal adjusted gross income between $24,001 and $28,000; and
• $400 for a qualified individual filing a single return with federal adjusted gross income between $17,501 and $20,000 or for 2 qualified individuals, or a qualified individual and a nonqualified individual, filing a joint return with federal adjusted gross income between $28,001 and $32,000.

The department of revenue must adjust the amounts of the credit and the amounts of adjusted gross income annually for inflation.

An individual who is both a qualifying senior and a qualified individual with a disability and meets the eligibility requirements to claim both the income tax credit and the PTC can only claim one or the other in the same income tax year.

APPROVED by Governor June 6, 2024

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