Bill > HB831

This bill modifies the existing elderly homeowner and renter income tax credit by making several key changes to provide more financial relief to seniors. The bill increases the amount that can be subtracted from gross household income from $12,600 to $14,100, raises the maximum tax credit from $1,150 to $1,400, and adjusts the phaseout of the credit for households with incomes between $35,000 and $50,000. The phaseout schedule now provides a more gradual reduction in credit amounts, with higher percentages of credit allowed at lower income levels (for example, households between $35,000 and $37,500 will now receive 60% of the credit instead of the previous 40%). The bill also introduces an annual inflation adjustment mechanism, requiring the department of revenue to update gross household income amounts each year based on the inflation factor. Additionally, the bill repeals certain provisions from a previous 2021 law and will apply retroactively to income tax years beginning after December 31, 2024. The changes are designed to provide more substantial tax relief to elderly homeowners and renters by increasing the credit amount and adjusting the income thresholds to account for inflation.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC2505