The newly approved $212 billion state budget includes relief for qualifying homeowners in New York who pay among the highest tax levies in the country.
But not everyone will qualify for the relief as part of the state budget, which is tied to household income. Here are five things to know about the provisions, known commonly as "circuit breaker" plan, which will come in the form of income tax credits.
1. Who will benefit?
The program will apply to taxpayers who make less than $250,000 based on the proportion of their income spent on property taxes. In other words, credits are based on the amount of property taxes paid in excess of 6 percent of an eligible taxpayer's federal adjusted gross income.
About 1.29 million New York taxpayers are estimated to be eligible to receive the income tax credit.
2. How much money can homeowners be in line for under the program?
Income tax credits will range between $250 and $350. All told, the program will cost about $440 million.
3. How will long will the program be in place?
The state budget enacts the circuit breaker for the tax years of 2021, 2022 and 2023.
4. Is this different from the STAR program?
Broadly speaking, yes. The STAR program either directly reduces property taxes on the bill itself or sends a check to homeowners with the difference. This program, rather, is a credit for when an income tax return is filed.
5. When does this all take effect?
Homeowners can claim the credit when they file their taxes in 2022.
