The bill amends the Income Tax Act of 1967, specifically sections 520 and 522, to enhance the property tax credit available to claimants. Key changes include raising the taxable value cap for homesteads from $135,000 to $165,400 through the 2025 tax year, with future adjustments tied to the Consumer Price Index. The credit for renters is also modified, allowing claimants to receive 23% of gross rent for tax years before 2027 and 25% for tax years after 2026. Additionally, the bill introduces provisions for senior citizens, enabling them to claim credits based on their total household resources and rent paid, with specific thresholds and reductions outlined. A new maximum credit limit is established, increasing it from $1,200 to $1,500 for the 2018 tax year through 2026, and setting a future cap of $2,500 starting in 2027.

Furthermore, the bill revises the calculation of credits for claimants with total household resources exceeding $28,000, specifying that those with resources between $28,000 and $30,000 will receive credits of 68% and 64% of the difference between property taxes and a specified percentage of total household resources, respectively. For claimants with resources over $30,000, the credit will be 60%. The bill clarifies eligibility criteria for various groups, including senior citizens and individuals with disabilities, and stipulates that only one claimant per household is entitled to the credit, with an exception for blind spouses filing jointly. The total credit allowed must not exceed the property tax due, and any excess credit must be deducted from claims under related environmental protection acts. The amendments will take effect 90 days after the bill is enacted into law.

Statutes affected:
House Introduced Bill: 206.520, 206.522