A bill to allow a credit against Federal income taxes or a payment from the United States Treasury for State and local real property taxes or an equivalent portion of rent paid on their residences by individuals who have attained age 65.

Amends the Internal Revenue Code to allow individuals age 65 or over an income tax credit for the State and local real property taxes, or the amount of rent constituting such taxes, paid on their principal residences. Provides for a payment from the Treasury in the case of individuals whose tax liability is less than such real property taxes.

Limits such credit or payment to $300 ($150 for married individuals filing separately). Reduces the allowable credit by the amount that the taxpayer's adjusted gross income exceeds $8,000 ($4,000 for married individuals filing separately). Extends such credit to married individuals filing jointly where either spouse has attained age 65.

Provides that such credit shall not affect the taxpayer's allowable income tax deductions for real property taxes.