State
Rhode Island
Year
2017
Variations in Receipt of Benefit
Benefit Varies with Income
Minimum Tax Amount Must be Paid
Benefit Type
Circuit Breaker
Benefit
This program provides a refundable tax credit to eligible homeowners and renters. The credit is based on property taxes in excess of income. The maximum credit is $335. There are 5 income brackets for all filers. For those with income less than $6,000, the credit is the taxes in excess of 3% of income. For those in the top bracket, $15,001 to $30,000, the credit is the taxes in excess of 6% of income. For renters, property taxes are assumed to be 20% of gross rent, excluding utilities. Applications for the credit must be filed by 18 April 2017 in order to qualify for a credit in that year.
How is Benefit Disbursed
Credit to the income tax bill
Eligible Property Type
Residential
Characteristics of Eligible Property
Only residential property is eligible for this program.
Eligibility Criteria
Age
Disability
Homeowner
Income Ceiling
Renter
Description of Eligibility Criteria
Must be 65 years or older and/or disabled. Eligible renters must have rented the home for the entire year. To be eligible for the disability requirement an individual must be receiving a social security disability benefit or Supplemental Security Income (SSI) payments. Total household income may not exceed $30,000.
Local Option in Adoption of Program
Local government is unable to exercise an option
Local Option Regarding Program Features
No local option regarding program features
State Funding for Local Tax Loss
State reimburses all of the local government tax loss
Description of State Funding for Tax Loss
The state makes the payment to the taxpayer.
Record ID
RI101_RR17
Footnotes
Sources
2016 Form RI-1040H Application and Instructions (2017) Rhode Island Division of Taxation
[http://www.tax.ri.gov/forms/2016/Income/2016%201040H_m.pdf Accessed 02/26/2018] View Archived Source