Thousands more Howard County residents can now take advantage of Aging in Place Tax Credit

Nov. 2—About 5,000 more Howard County households will soon be able to take advantage of the Aging in Place Tax Credit, thanks to rule changes passed last month by the County Council and signed by the county executive.

The tax credit was enacted by the Maryland General Assembly in 2017 to encourage older adults to "age in place" in their longtime homes. The state law requires that a resident age 65 or older reside in the same home for a number of consecutive years in order to apply for a 20% property tax credit.

On Oct. 3 the Howard County Council approved amendments to the law reducing the consecutive number of years a county resident must live in their home before qualifying from 35 to 30, and increasing the number of years the credit can be received from five to eight years.

The council also approved an increase on the home value assessment ceiling from $500,000 to $650,000.

The amendments were signed by the county executive on Oct. 13, but will not become effective until Dec. 13. An application will be available on or about Nov. 30 on the county's website at howardcountymd.gov/finance/tax-credits.

To receive the tax credit, a property owner must submit an application to the county's Department of Finance. After approval, the credit will be automatically renewed unless the property owner is no longer eligible, for up to eight years.

Howard County's Budget Office said that in tax year 2021, the county provided the credit to 2,534 residents, for a total annual relief of $1.8 million. The amendments passed last month are expected to increase users of the credit by about 5,000 residents in fiscal 2024.

The Budget Office said the credits are expected to reduce annual county general fund revenues by up to $6 million on average, but the actual amount will vary based on property value changes and the number of residents eligible who apply each year.

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District 5 council member David Yungmann said the impact on the county's budget is variable, and also worth it.

"My perspective is these folks built much of what we have in Howard County, they still have much to contribute to our community, and many are on fixed incomes, so I am committed to finding ways to help them stay here," he said.