| Summary |
For income tax years commencing on and after January 1, 2024,
the bill creates a family affordability tax credit (credit) as follows:
•
For each of a taxpayer's eligible children 5 years of age or
younger, a taxpayer filing a single return with adjusted
gross income of $15,000 or less and taxpayers filing a joint
return with adjusted gross income of $25,000 or less can
claim a $3,200 credit;
•
For each of a taxpayer's eligible children 5 years of age or
younger, a taxpayer filing a single return with adjusted
gross income between $15,000 and $85,000 and taxpayers
filing a joint return with adjusted gross income between
$25,000 and $95,000 can claim a credit, the amount of
which is reduced by $220 from $3,200 for every $5,000
above $15,000 or $25,000 of adjusted gross income that the
resident individual or individuals make;
•
For each of a taxpayer's eligible children between the ages
of 6 and 16, a taxpayer filing a single return with adjusted
gross income of $15,000 or less and taxpayers filing a joint
return with adjusted gross income of $25,000 or less can
claim $2,400; and
•
For each of a taxpayer's eligible children between the ages
of 6 and 16, a taxpayer filing a single return with adjusted
gross income between $15,000 and $85,000 and taxpayers
filing a joint return with adjusted gross income between
$25,000 and $95,000 can claim a credit, the amount of
which is reduced by $165 from $2,400 for every $5,000
above $15,000 or $25,000 of adjusted gross income that the
resident individual or individuals make.
The bill also provides that the full amount of the credit can only be
claimed for an income tax year in which there are projected to be excess
state revenues for the fiscal year that ends during the income tax year that
are required to be refunded pursuant to section 20 (7)(d) of article X of the
state constitution in an amount that will equal or exceed the amount
required to be refunded pursuant to the homestead property tax exemption
plus the projected full amount of the credit. For an income tax year in
which there are projected to be excess state revenues for the fiscal year
that ends during the income tax year that will exceed the amount required
to be refunded pursuant to the homestead property tax exemption but will
not exceed that amount plus the projected aggregate amount of the credit
that may be claimed in that income tax year, the credit will be allowed but
will be reduced proportionally so that the aggregate amount of the credit
available is equal to the amount of excess state revenues remaining to be
refunded. For an income tax year in which there is not projected to be
excess state revenues for the fiscal year that ends during the income tax
year or the amount of such excess state revenues required to be refunded
will be less than the amount required to be refunded pursuant to the
homestead property tax exemption, the credit is not allowed for that
income tax year. The department of revenue is authorized and encouraged
to develop a means of paying the credit in 12 equal monthly payments
rather than annually.
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