This bill amends the Income Tax Act of 1967 by updating definitions and eligibility criteria for tax credits related to disabled veterans, servicepersons, and their widows or widowers. It defines "disabled veteran" in accordance with the General Property Tax Act and modifies the income threshold for "eligible serviceperson," "eligible veteran," and "eligible widow or widower" from a fixed income definition to a total household resources limit of $7,500 per year, with exceptions for those receiving compensation from the United States Department of Veterans Affairs. The bill also introduces a detailed schedule for tax allowances based on disability percentages and service history.

Additionally, the bill revises the property tax credit provisions, increasing the taxable value cap for homesteads from $135,000 to $165,400 through the 2025 tax year, and establishes a mechanism for adjusting this cap based on the Consumer Price Index starting in 2026. It also modifies the credit calculation for renters and includes provisions to prevent discrimination against renters claiming credits. The maximum credit allowed is increased from $1,500 to $1,900 per year, with future adjustments based on the Consumer Price Index. The enactment of this bill is contingent upon the passage of related legislation.

Statutes affected:
House Introduced Bill: 206.506, 206.520