SECTION 1.  Subsection (k) of section 6 of chapter 62 of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by striking out paragraph (2) and inserting in place thereof the following two paragraphs:-

(2) A tenant of residential property located in the commonwealth, who is 65 years of age or older, who is not a dependent of another taxpayer and who occupies said property as his principal residence, shall be allowed a credit equal to the amount by which the rent constituting real estate tax payment exceeds 10 per cent of the taxpayer's total income, but the credit shall not exceed $750.

(2½) Notwithstanding the provisions of paragraph (4), an owner of residential property located in the commonwealth, who is 65 years of age or older, who is not a dependent of another taxpayer and who occupies said property as his or her principal residence, shall be allowed a credit equal to the amount by which the real estate tax payment exceeds such taxpayer’s amount of payment for calendar year 2012; provided, however, that the income limit in this subsection shall be increased by amounts equal to such income multiplied by the cost-of-living adjustment for the calendar year.

SECTION 2.  This act shall take effect January 1, 2013.