Circuit Breaker Program

• Connecticut offers real property tax credits to elderly residents age 65 and older and to disabled residents. The Circuit Breaker Program, previously known as the Elderly and Totally Disabled Tax Relief Program, is a state-mandated tax program, which reimburses county governments for their lost tax revenues after providing the tax relief. According to the Connecticut General Statutes, all towns in the state must provide property tax help to applicants age 65 or older and eligible disabled residents. The tax credit program allows eligible households to receive tax abatements on their local municipal tax bills.
  
  

Elderly and Disabled Tax Relief Amounts

• As a tax credit program, taxpayers eligible to receive the tax credits do not repay their credits. Eligibility is limited to taxpayers who meet the age minimum or taxpayers who are surviving spouses of previously eligible program participants, and they must meet maximum income guidelines and residency requirements. Alternatively, taxpayers can qualify for the credits if they have certified long-term disabilities. Connecticut limits the tax credits to taxpayers who live in their homes for most of the year, and they must have lived in Connecticut for at least one year before applying for their credits.
  
  Additionally, the state limits benefits to taxpayers with limited incomes. The state adjusts the income thresholds annually for inflation, and taxpayers must apply for their tax credits before May 15 annually. As of 2010, qualified elderly and totally disabled taxpayers can receive up to $1,250, depending on their marital status and incomes.
  
  

Tax Freeze Program

• The Tax Freeze Program allows towns the option to provide tax freezes for residents. Although previously required by the state, counties are no longer required to adopt the program. Under the Tax Freeze Program, counties can provide elderly and disabled residents additional tax assistance other than that which is provided by the state's Circuit Breaker Program.
  
  Homeowners must be 70 or older, permanently disabled or be surviving spouses of those previously eligible to participate in the program. Elderly residents must have annual incomes of $6,000 or less, and eligible residents can receive tax freezes on their current tax bills at rates determined by local laws. Thus, an eligible homeowner can freeze her tax bill for future years to help her afford the rising assessment values caused by inflation and rising property values.
  
  

Limitations

• Connecticut law requires municipalities to limit the amount of tax relief eligible applicants receive. The total tax relief or credit taxpayers can receive is limited to one-tenth of their property values. Furthermore, an eligible taxpayer's property tax relief cannot exceed her total annual property tax bill. Connecticut law further requires towns to place tax liens on homes of residents who claim tax credits exceeding 75 percent of their total taxes due.