Governor Deval Patrick's Budget Recommendation - House 1 Fiscal Year 2014

1.609 -Refundable State Tax Credit Against Property Taxes for Seniors ("Circuit Breaker")

Item DescriptionFY2012 FY2013 FY2014
1.609 Refundable State Tax Credit Against Property Taxes for Seniors ("Circuit Breaker")
Seniors are eligible for a tax credit to the extent that their property taxes - or 25% of rent - exceed 10% of their income. Income limits and a cap on the maximum assessed value of the filer's primary residence apply. The maximum credit is also adjusted annually for inflation. The maximum base credit was $385 for tax year (TY) 2001, $790 for TY02, $810 for TY03, $820 for TY04, $840 for TY05, $870 for TY06, $900 for TY07, $930 for TY08, $960 for TY09, $970 for TY10, $980 for TY11 and $1,000 for TY12.

Income limits and the maximum credit are adjusted for inflation over a 1999 base year; however, chapter 136 of the Acts of 2005 increased the assessed home valuation to $600,000 and set its base year to 2004. The credit may not be sold or transferred to another taxpayer, but are refundable.

Origin:  M.G.L. c. 62, S. 6 (k); Ch. 136 of the Acts of 2005.
Estimate:  $76.5
68.5 72.4 76.5


IRCFederal Internal Revenue Code (26 U.S.C.)
U.S.C United States Code
M.G.L. Massachusetts General Laws
Rev. Rul.; C.B. Revenue Ruling; Cumulative Bulletin of the U.S. Treasury
ESTIMATES All estimates are in $ millions.

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