(a)(1) An eligible claimant who owned the homestead on April 1 of the claim year and whose household income does not exceed $115,000.00 shall be entitled to a homestead property tax exemption in the claim year in an amount determined as follows:
(2) An eligible claimant who owned the homestead on April 1 of the claim year and whose household income does not exceed $47,000.00 shall also be entitled to a credit amount against the claimant’s municipal taxes for the upcoming fiscal year that is equal to the amount by which the municipal property taxes for the municipal fiscal year that began in the taxable year upon the claimant’s housesite exceeds a percentage of the claimant’s household income for the taxable year as follows:
(3) In no event shall the homestead property tax exemption provided for in subdivision (1) of this subsection reduce the housesite value below zero. In no event shall the municipal property tax credit provided for in subdivision (2) of this subsection exceed the amount of the reduced municipal property tax.
(4) Each dollar amount in subdivision (1) of this subsection shall be adjusted for inflation annually on or before November 15 by the Commissioner of Taxes. As used in this subdivision, “adjusted for inflation” means adjusting the dollar amount by the National Income and Product Accounts (NIPA) implicit price deflator for state and local government consumption expenditures and gross investment published by the U.S. Department of Commerce, Bureau of Economic Analysis, from fiscal year 2025 through the fiscal year for which the amount is being determined, and rounding upward to the nearest whole dollar amount.
(b)(1) An eligible claimant who rented the homestead shall be entitled to a credit for the taxable year in an amount not to exceed $2,500.00, to be calculated as follows:
(A) If the claimant’s income is less than or equal to the extremely low-income limit, the claimant shall be entitled to a credit in the amount of 10 percent of fair market rent.
(B) If the claimant’s income is greater than the extremely low-income limit but less than or equal to the very low-income limit, the claimant shall be entitled to a percentage of the credit that is proportional to the claimant’s income that is less than the very low-income limit, determined by:
(i) subtracting the claimant’s income from the very low-income limit;
(ii) dividing the value under subdivision (i) of this subdivision (1)(B) by the difference between the extremely low-income limit and the very low-income limit; and
(iii) multiplying the value under subdivision (ii) of this subdivision (1)(B) by 10 percent of fair market rent.
(C) If the claimant’s income is greater than the very low-income limit, the claimant shall not be entitled to a renter credit.
(D) A claimant who is eligible for a renter credit, including pursuant to this subsection (b), and who receives a rental subsidy shall be entitled to a credit in the amount of 10 percent of gross rent paid.
(E) A renter credit shall be prorated by the number of calendar months in the taxable year during which the claimant rented the homestead, except for a credit based on gross rent paid under subdivision (D) of this subdivision (b)(1), and by the portion of the principal dwelling used for business purposes, if the portion used for business purposes includes more than 25 percent of the floor space of the dwelling.
(2) The Commissioner shall calculate the credit under subdivision (1) of this subsection (b) using the fair market rent corresponding to a number of bedrooms equal to the number of personal exemptions allowed under subdivision 5811(21)(C) of this title for the taxable year, provided that for claimants who resided with any person who was neither the claimant’s dependent nor jointly filing spouse at any time during the taxable year, the Commissioner shall reduce the credit by 50 percent.
(c) To be eligible for an exemption or credit under this chapter, the claimant:
(1) must have been domiciled in this State during the entire taxable year;
(2) may not be a person claimed as a dependent by any taxpayer under the federal Internal Revenue Code during the taxable year; and
(3) in the case of a renter, shall have rented property for at least six calendar months, which need not be consecutive, during the taxable year.
(d) The owner of a mobile home that is sited on a lot not owned by the homeowner may include an amount determined under subdivision 6061(7) of this title as allocable rent paid on the lot with the amount of property taxes paid by the homeowner on the home for the purpose of computation of the municipal property tax credit under subdivision (a)(2) of this section, unless the homeowner has included in the claim an amount of property tax on common land under the provisions of subsection (e) of this section.
(e) Property taxes paid by a cooperative, not including a mobile home park cooperative, allocable to property used as a homestead shall be attributable to the co-op member for the purpose of computing the property tax liability of the co-op member under this section. Property owned by a cooperative declared as a homestead may only include the homestead and a pro rata share of any common land owned or leased by the cooperative, not to exceed the two-acre housesite limitation. The share of the cooperative’s assessed value attributable to the housesite shall be determined by the cooperative and specified annually in a notice to the co-op member. Property taxes paid by a mobile home park cooperative, allocable to property used as a housesite, shall be attributed to the owner of the housesite for the purpose of computing the property tax liability of the housesite owner under this section. Property owned by the mobile home park cooperative and declared as a housesite may only include common property of the cooperative contiguous with at least one mobile home lot in the park, not to exceed the two-acre housesite limitation. The share attributable to any mobile home lot shall be determined by the cooperative and specified in the cooperative agreement. A co-op member who is the housesite owner shall be entitled to a property tax credit in an amount determined by multiplying the property taxes allocated under this subsection by the percentage of the exemption for which the housesite owner’s household income qualifies under subdivision (a)(1) of this section.
(f) [Repealed.]
(g) Notwithstanding subsection (d) of this section, if the land surrounding a homestead is owned by a nonprofit corporation or community land trust with tax exempt status under 26 U.S.C. § 501(c)(3), the homeowner may include an allocated amount as property tax paid on the land with the amount of property taxes paid by the homeowner on the home for the purposes of computation of property tax liability under this section. The allocated amount shall be determined by the nonprofit corporation or community land trust on a proportional basis. The nonprofit corporation or community land trust shall provide to that homeowner, by January 31, a certificate specifying the allocated amount. The certificate shall indicate the proportion of total property tax on the parcel that was assessed for municipal property tax and for statewide property tax and the proportion of total value of the parcel. A homeowner under this subsection shall be entitled to a property tax credit in an amount determined by multiplying the property taxes allocated under this subsection by the percentage of the exemption for which the homeowner’s household income qualifies under subdivision (a)(1) of this section.
(h) A homestead owner shall be entitled to an additional property tax credit amount equal to one percent of the amount of income tax refund that the claimant elects to allocate to payment of statewide education property tax under section 6068 of this title.
(i) The homestead property tax exemption and the municipal property tax credit under subsection (a) of this section shall be calculated without regard to any exemption under subdivision 3802(11) of this title. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 16, eff. Jan. 1, 1998; 1999, No. 49, § 11, eff. June 2, 1999; 2001, No. 63, § 163c; 2001, No. 144 (Adj. Sess.), §§ 17, 22, eff. June 21, 2002; 2003, No. 68, § 10, eff. July 1, 2004; 2003, No. 70 (Adj. Sess.), §§ 47, 48; 2005, No. 38, §§ 25, 26; 2005, No. 185 (Adj. Sess.), §§ 2, 2a, eff. January 1, 2007; 2005, No. 185 (Adj. Sess.), § 12; 2007, No. 33, § 10, eff. May 18, 2007; 2007, No. 190 (Adj. Sess.), § 18, eff. Jan. 1, 2008; 2009, No. 160 (Adj. Sess.), §§ 25, 27; 2011, No. 45, § 13b, eff. Jan. 1, 2012; 2011, No. 143 (Adj. Sess.), § 31; 2013, No. 73, § 40, eff. June 5, 2013; 2013, No. 174 (Adj. Sess.), § 64, eff. Jan. 1, 2016; 2015, No. 46, §§ 29, 30; 2018, No. 11 (Sp. Sess.), § H.11, eff. Jan. 1, 2017; 2018, No. 11 (Sp. Sess.), § H.12, eff. July 1, 2019; 2019, No. 6, § 86, eff. April 22, 2019; 2019, No. 51, § 31, eff. June 10, 2019; 2019, No. 51, § 27a, eff. July 2, 2019; 2019, No. 160 (Adj. Sess.), § 3, eff. Jan. 1, 2021; 2021, No. 105 (Adj. Sess.), § 553, eff. July 1, 2022; 2025, No. 73, § 52, contingently eff. July 1, 2028.)