Senior Housing Income Tax Credit

Section 1 of the bill creates a refundable income tax credit (credit) that is available for the income tax year commencing on January 1, 2022, for a qualifying senior, which means an individual who:

• Is 65 years of age or older at the end of 2022;
• Has federal adjusted gross income (AGI) that is less than or equal to $75,000; and
• Has not claimed a homestead property tax exemption for the 2022 property tax year.

The amount of the credit is $1,000 for a qualifying senior 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. 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, both taxpayers may claim the credit, but the maximum credit for each is $500 and, for every $500 of adjusted gross income above $25,000, the amount of the credit is reduced by $5. Notwithstanding these limits, a taxpayer who also qualifies for a property tax and rent assistance grant or heat assistance grant during calendar year 2022 is eligible to receive the full credit without an income-based reduction.Section 2 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: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)