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House approves income-based housing fairness tax credit (HB 154) after debate

2415817 · February 26, 2025
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Summary

House Bill 154, which would create an income-based tax credit tied to property taxes and provide credits to renters as a function of rent attributable to property taxes, passed second reading 60–40.

Lawmakers voted to advance House Bill 154, which creates a housing fairness income tax credit designed to offset property taxes for homeowners and a rent-related credit for renters. Representative Carlin, the sponsor, said the credit links tax relief to household ability to pay and can consolidate existing elderly and disability property tax assistance programs.

Sponsor remarks: Representative Carlin described an example: "A family earning $75,000 with a tax bill of $4,000 would get a $1,000 credit," and said the bill could be structured to replace some existing assistance programs without producing losers.

Opposition and fiscal concerns: Majority Leader Fitzpatrick urged colleagues to consider fiscal effects, calling the bill "a hundred million dollars a year" and warning of redistribution from fiscally conservative counties to higher-spending areas. Supporters responded that general fund credits have precedent and that the proposal provides targeted relief for households whose property tax burden grows relative to income.

Outcome and next steps: The recorded second-reading vote was 60 in favor and 40 opposed; HB 154 passed second reading and will continue in the legislative process. Sponsor Carlin said the bill is intended to be a durable, income-linked credit, and noted further work in the Senate could consolidate programs and refine implementation details.