House Bill 191, passed during the 67th Montana Legislative Session, made changes to the Elderly Homeowner/Renter Tax Credit, effective tax year 2022.

The bill increased both the allowable exclusion and the tax credit itself, effective tax year 2022. The previous exclusion was $6,300 and the previous maximum credit was $1,000. The new law doubled the exclusion to $12,600 and increased the credit to as much as $1,150.

Individuals at least age 62 at the end of the calendar year for which they are claiming the credit may qualify if they:

• had household income of less than $45,000
• lived in Montana for at least 9 months of the calendar year
• rented, owned or leased a home in the state for at least 6 months

The amount of the tax credit is based on household income, rent, and property tax. It is calculated as shown on the Montana Elderly Homeowner/Renter Credit schedule (Form 2, Page 10). Depending on the result of the calculation, a taxpayer’s credit will range from $0 to $1,150.

This bill is subject to the ARPA Savings Clause. If the savings clause is triggered, the credit and exclusion will revert to the previous values of $1,000 and $6,300, respectively. For 2022, however, the clause was not triggered, thereby assuring that the new maximums will be in effect for this year.