Financial Assistance for Certain Low-Income Individuals

The bill changes the "Property Tax/Rent/Heat Credit Rebate" (PTC). Under current law, the PTC is available to qualifying seniors and individuals with a disability who earn income below a threshold amount and who pay real property tax, or a tax equivalent through rent, or heat or fuel expenses, or an equivalent through rent. Under current law, 2 sections of statute provide for the PTC. The first section provides the PTC for assistance in the payment of real property tax and the second section provides the PTC for assistance in the payment of heat or fuel expenses. The bill eliminates the second statutory section and combines both types of PTC, into the first statutory section. The bill also updates certain dollar values used to calculate the PTC to their current levels. Additionally, the PTC, for tax years commencing on or after January 1, 2025, will only be available to qualifying seniors.

Qualified individuals with a disability for tax years commencing on or after January 1, 2025, are allowed an income tax credit. Eligibility with respect to disability mirrors the eligibility as it exists under current law for the PTC. The income tax credit is allowed in the following amounts:

• $1,200 for a qualified individual filing a single return with adjusted gross income less than or equal to $10,000 or for 2 qualified individuals, or a qualified individual and a nonqualified individual, filing a joint return with adjusted gross income less than or equal to $16,000;
• $1,000 for a qualified individual filing a single return with adjusted gross income between $10,001 and $12,500 or for 2 qualified individuals, or a qualified individual and a nonqualified individual, filing a joint return with adjusted gross income between $16,001 and $20,000;
• $800 for a qualified individual filing a single return with adjusted gross income between $12,501 and $15,000 or for 2 qualified individuals, or a qualified individual and a nonqualified individual, filing a joint return with adjusted gross income between $20,001 and $24,000;
• $600 for a qualified individual filing a single return with adjusted gross income between $15,001 and $17,500 or for 2 qualified individuals, or a qualified individual and a nonqualified individual, filing a joint return with adjusted gross income between $24,001 and $28,000; and
• $400 for a qualified individual filing a single return with adjusted gross income between $17,501 and $20,000 or for 2 qualified individuals, or a qualified individual and a nonqualified individual, filing a joint return with adjusted gross income between $28,001 and $32,000.

The department of revenue must adjust the amounts of the credit and the amounts of adjusted gross income annually for inflation.

An individual who is a qualifying senior and a qualified individual with a disability and would meet the eligibility requirements to claim both the income tax credit and the PTC can only claim one or the other in the same income tax year.

The bill also makes conforming amendments.

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)