The 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 "person" is replaced with "individual" and "claimant" is defined as an individual who files a claim and meets certain residency requirements. The bill also modifies the income thresholds for eligibility, 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 a new maximum credit limit of $2,000 per year, up from $1,500, and mandates annual adjustments based on the Consumer Price Index. The changes are set to take effect for 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