A bill to amend the Internal Revenue Code of 1954 to provide an optional credit for taxes or rent paid on a principal residence by persons who are 65 years of age or older, and by persons who are handicapped.

Authorizes, under the Internal Revenue Code, any individual who has attained the age of 65 or who is disabled to elect to take a tax credit for the amount of real property taxes paid or accrued by the taxpayer to a State or political subdivision on the taxpayer's principal residence, or for the amount of rent constituting such real property taxes.

Limits such credit to $250 for any taxable year.

Reduces such credit by ten percent of the amount of excess of the taxpayer's adjusted gross income over $5,500.

Apportions such credit among two or more eligible taxpayers using the same principal residence based on such taxpayers' ratable share of the rent paid.