| Summary |
For the 2024 income tax year through the 2026 income tax year,
the bill creates a nonrefundable income tax credit (credit), which cannot
be carried forward, for a taxpayer who:
•
Rents the taxpayer's primary residence in the state; and
•
Has a federal adjusted gross income (AGI) that is less than
or equal to $75,000 if filing a single return, or less than or
equal to $150,000 if filing a joint return (qualifying
taxpayer).
The amount of the credit is:
•
$2,000 for 2 qualifying taxpayers filing a joint return with
a federal AGI that is $50,000 or less. For every $500 of
AGI above $50,000, the amount of the credit is reduced by
$10.
•
$1,000 for a qualifying taxpayer filing a single return with
a federal AGI that is $25,000 or less. For every $500 of
AGI above $25,000, the amount of the credit is reduced by
$10.
Notwithstanding the income-based reductions in the allowable
credit amount, a qualifying taxpayer who also qualifies for a rent or heat
assistance grant during calendar year 2024, 2025, or 2026, as applicable,
is eligible to receive the full credit amount. In addition, the bill specifies
that, to the extent permitted by federal law, the credit is not income or
resources for the purpose of determining eligibility for the payment of
public assistance benefits and medical assistance benefits authorized
under state law or for a payment made under any other publicly funded
programs.
The bill specifies that a qualifying taxpayer who is eligible to
claim any other income tax credit that is allowed to a taxpayer who rents
the taxpayer's primary residence and has a federal AGI that is less than or
equal to $75,000 if filing a single return, or less than or equal to $150,000
if filing a joint return, may claim the income tax credit allowed in the bill
or the other income tax credit allowed for income-qualified renters, but
not both.
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