What is a Homestead Preservation Credit (HPC)?
Certain individuals are eligible to receive a credit if their real estate property taxes increase 2.5 percent in a non-reassessment year (even numbered year) or 5 percent in a reassessment year (odd numbered year). The credit would be for the amount that exceeds the 2.5 or 5 percent increase in taxes. The act requires a legislative appropriation to fund the credit. If no money is appropriated, no credits will be issued. The credit will not be applied to your property tax every year. You must apply for the credit every year in which you are eligible and meet the 2.5 or 5 percent increase for each year in which you file.
