Owner-occupant residential tax credit.

(b) The credit under subsection (a) of this section shall be calculated as follows:

(1)

(A) In the case of real property that did not receive the credit under this section in the prior tax year:

(i) Subtract the current tax year’s homestead deduction from the prior tax year’s assessed value; and

(ii) Multiply the amount by 110% to determine the current tax year’s taxable assessment; or

(B) In the case of real property that did receive the credit under this section in the prior tax year:

(i) Multiply the prior tax year’s taxable assessment by 110%; and

(ii) Subtract from that amount the difference of the current tax year’s homestead deduction less the prior tax year’s homestead deduction to determine the current tax year’s taxable assessment.

(2) Subtract the current tax year’s homestead deduction from the current tax year’s assessed value.

(3) Subtract the current tax year’s taxable assessment determined under paragraph (1) of this subsection from the amount determined in paragraph (2) of this subsection;

(4) If the amount determined under paragraph (3) of this subsection is a positive number, multiply the amount by the applicable real property tax rate to determine the credit for the current tax year.

(c) The credit under this section shall not apply if:

(1) During the prior tax year:

(A)

(i) The real property was transferred for consideration to a new owner; or

(ii) The return required by §§ 42-1103(d) and 47-903(d) was due;

(B) The value of the real property was increased due to a change in the zoning classification of the real property initiated or requested by the homeowner or anyone having an interest in the real property; or

(C) The assessed value of the real property was clearly erroneous due to an error in calculation or measurement of improvements on the real property;

(2) During the prior calendar year, the real property was assessed under § 47-829 ; or

(3) During the current tax year, the qualifying homestead deduction applications for dwelling units in a cooperative housing association are:

(i) Filed for less than 50% of the dwelling units; or

(ii) Not filed timely for the entire tax year.

(d) Notwithstanding any other provision of this section, if the entire interest in the real property is transferred to a new owner and the real property no longer qualifies as a homestead pursuant to § 47-850 or § 47-851[ § 47-850.01 ], the real property shall be entitled to the credit applicable to the installment payable during the half tax year during which the ownership interest was transferred. At the end of the half tax year, the credit shall cease.

(e) Notwithstanding any other provision of this chapter, if the current tax year’s taxable assessment of a real property receiving the homestead deduction under § 47-850 or § 47-850.01 is less than 40% of the current tax year’s assessed value, the current tax year’s taxable assessment for purposes of subsection (b)(1) of this section shall be 40% of the current tax year’s assessed value.

(f) The credit under this section shall:

(1) Be nonrefundable;

(2) Be apportioned equally between each installment during the tax year; and

(3) Not be carried forward or carried back.