HARVARD — State Rep. Robert Hargraves has announced details of a bill recently passed by the Legislature, and signed into law by Gov. Romney, that increases the number of elderly homeowners who can qualify for the existing Senior Circuit Breaker Tax Credit.
This credit allows seniors who meet certain income standards — less than $45,000 after deductions and exemptions for a single filer in 2005, and less than $67,000 for taxpayers filing jointly — to claim a break of up to $840 on their state income tax form, provided their local property tax is greater than 10 percent of this income.
Currently, only seniors whose homes are valued at $452,000 or less can apply for the credit. The new legislation raises this limit to $600,000, and creates a new system for increasing that amount every year to account for rising average home values in Massachusetts.
The bill also allows cities and towns to lower the interest rate on property taxes charged to seniors who defer payment until after they sell their homes.
