Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Credits topic
No spam. Unsubscribe anytime.
Committee hears extension of certain retirement income tax credit; analysts note phaseout and aging-index issues
Summary
Senate Bill 112, which would extend a retirement-income tax credit for low-income seniors, received an LRO briefing. Analysts said the credit’s income thresholds are not indexed to inflation, reducing the number of beneficiaries over time.
The Senate Committee on Finance and Revenue heard a Legislative Revenue Office briefing on Senate Bill 112 on March 12. The bill would extend for six years an existing credit designed to provide tax relief for lower-income taxpayers age 62 or older with qualified pension income.
Kyle Easton of the LRO told the committee the credit equals 9% of qualified pension income for eligible taxpayers and is means-tested. The LRO brief noted the formula and income thresholds were set when the credit was created in the early 1990s and are not indexed to inflation; as a result, the pool of taxpayers who qualify has declined over time. The credit’s design also treats Social Security income differently in the phase-out formulas.
No witnesses were registered for the hearing and no committee action was taken at the session recorded March 12.
