This bill amends the Income Tax Act of 1967, specifically sections 504 and 520, to update definitions and eligibility criteria for tax credits related to property taxes and homestead claims. Notably, the term "blind" is redefined to specify that it refers to an individual with a permanent impairment of both eyes, and the term "claimant" is updated to include "spouses" instead of "husband and wife." The bill also modifies the income thresholds for tax credits, increasing the maximum taxable value of a homestead from $135,000 to $160,700 for the 2024 tax year, and adjusts the minimum total household resources for claimants filing single or joint returns.

Additionally, the bill revises the percentage of gross rent that can be claimed as a credit, increasing it from 20% to 23% for tax years before 2025 and from 23% to 25% for tax years after 2024. It also establishes that the total credit allowed under this section and section 522 will not exceed $2,000 per year starting from the 2025 tax year, with provisions for annual adjustments based on the Consumer Price Index. The amendments are set to apply to all tax years beginning on or after January 1, 2025, contingent upon the enactment of related legislation.

Statutes affected:
Senate Introduced Bill: 206.504, 206.520