ELLICOTT CITY, MD – Howard County Executive Calvin Ball today announced the eligibility requirements for the County’s Department of Finance’s Senior Tax Credit are now expanded and the length of time eligible property owners can receive the Aging in Place (AIP) Tax Credit has been extended from eight years to 10 years. This follows a unanimous vote by the Howard County Council on Council Bill (CB) 60-2025 on October 6th. Ball pre-filed his legislation calling for the expansion of the Senior Tax Credit and extension of the AIP Tax Credit back in August, signed into law on October 9th, and the legislation went into effect today, December 9th.
As our county’s older adult population continues to grow and eclipse our younger generations, it is imperative that we continue to take the necessary steps to ensure these valued community members are able to comfortably, securely, and safely age in place. I applaud the Howard County Council for recognizing the vital importance of updating these tax credits to reflect the trying times and financial strains our older adults face on a daily basis.
Senior Tax Credit
First established in 2006, the Senior Tax Credit was previously restricted to households with a combined household income at or below 500 percent of the federal poverty level and with a combined household net worth of no more than $500,000. With the passage of CB 60-2025, the maximum net worth allowed under this tax credit is now $800,000 to account for approximate inflation that has occurred since 2007.
Additionally, with this approved legislation, beginning in tax year 2026:
- The net worth cap will be adjusted annually for inflation, based on the Consumer Price Index (CPI) for the Baltimore-Columbia-Towson area, and
- Updated thresholds will be announced by the County’s Department of Finance no later than the last day of February each year.
AIP Tax Credit
The AIP Tax Credit has been available since 2017 and previously expired after a property owner received the credit for eight years. With the passage of CB 60-2025, eligible property owners can now receive this tax credit for 10 years.
Furthermore, through clarifying and additional language that was added through Amendment 1, active duty, retired, or honorably discharged individuals with a service-connected disability rating of 75 to 99 percent or a surviving spouse of an individual who had a service-connected disability rating of 75 to 99 percent, who has not remarried, are now also eligible for this tax credit in accordance with State Law. Through an additional amendment, owners will receive an automatic renewal upon submission of verification of their continued eligibility.
Finally, CB 60-2025 also establishes a temporary commission to review the long-term benefits and fiscal impact of the County's Senior Tax Credit, the AIP Tax Credit, and property tax deferral program for older adults.
For tax year 2025, property owners who applied for Finance’s Senior Tax Credit by its October 1, 2025 deadline and its AIP Tax Credit by its September 30, 2025 due date, and who are approved, will receive a credit after CB 60-2025’s effective date of December 9, 2025.
Additionally, new applicants affected by the changes in CB 60-2025 will be able to apply for the Senior and AIP Tax Credits for 30 days from today, December 9th. Applicants should continue to pay their tax bills while their applications are reviewed to avoid any additional penalties or interest.
For more information about available residential tax credits, visit Finance’s “Tax Credits” website or contact the department’s Tax Customer Service Line at 410-313-2062 or email customerservice@howardcountymd.gov.