Senior Housing Income Tax Credit

The act 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 a resident 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 taxpayer is $500 and, for every $500 of adjusted gross income above $25,000, the amount of the credit is reduced by $5. 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 2022 is eligible to receive the full credit.

The property tax administrator is required 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 enacted.)