(The Center Square) – A $136 million deal to expand Pennsylvania’s property tax and rent rebate program will soon head to the governor’s desk.
The legislation fleshes out Gov. Josh Shapiro’s budget proposal to increase the income cap and rebate amounts for the program after nearly two decades of stagnation. According to the bill’s fiscal note, the more generous benefits will impact more than 548,000 low-income households – most of which are seniors and those living with disabilities.
The Department of Aging says the extra cash will not only provide for essentials but also keep seniors living at home for longer. The rebate often covers costs that benefit whole families who are pulling together to care for both children and the elderly, a circumstance state agencies find themselves grappling with more and more.
Specifically, the bill would increase the maximum rebate from $650 to $1,000 and raise the income cap to $45,000, tying it to the consumer price index. This will make 150,000 Pennsylvanians eligible for the program for the first time and nearly double the rebate many are already receiving, the administration said.
According to estimates from the Department of Revenue, the entire program would cost $333.8 million in the 2024-25 fiscal year – a 69% increase over existing spending. The annual price tag would climb in tandem with income thresholds that will adjust annually based on inflation and exceed $375 million by the end of the governor’s first term.
