The following steps should be taken to calculate the amount of Homeowners' Tax Credit:

1. Determine the assessment eligible for tax credit consideration. Generally, to determine the eligible assessment, the amount of credit, if any, received under the provision of Section 9-105 (the Homestead Credit) is subtracted from the full assessed valuation of the homeowner's property. The exceptions are cases involving farms or large tracts of land where the amount of any Homestead Credit is subtracted from the homesite/curtilage for calculation of the eligible assessment. If the eligible assessment is in excess of $150,000, a maximum of $150,000 assessment is to be used.
2. Multiply the eligible assessment as determined in step (a) above by the total State, county and/or municipal and special district tax rates to determine the "total real property taxes" subject to tax credit [Section 9-104(a)(13)]. All discounts for early payment and all interest or penalties for failure to pay taxes on a timely basis shall be calculated on the "final tax liability" which is the tax liability remaining after any reduction due to a Homeowners' Tax Credit.
3. Ascertain the applicant's combined gross income. Compare the amounts entered on the Tax Credit application form with what is reported on the copy of the federal income tax return submitted.
4. After determining the combined gross income, apply the following graduated formula to that amount to obtain the applicant's maximum property tax liability. Multiply the first $4,000 of combined income by zero percent; the next $4,000 by 1%; the next $4,000 by 4.5%; the next $4,000 by 6.5% and the excess over $16,000 by 9.0%.
5. Determine the State Homeowners' Tax Credit by subtracting the applicant's maximum property tax liability calculated in step (c) from the total real property taxes eligible for credit calculated in step (b). The difference is the amount of the State Homeowners' Tax Credit.
6. Determine if the applicant additionally qualifies for the local Hold Harmless calculation found in Section 9-101 of the Tax-Property Article.
   1. If not, produce a State tax credit in the amount calculated in step (d) to be issued either directly on the tax billing or as a credit voucher/certificate.
   2. If the applicant is eligible for Hold Harmless consideration, calculate the tax credit under the county's 1974-75 program and the 1974-75 municipal program where applicable.
   1. Combine the County credit with any applicable municipal credit, as calculated in (e)(2).
   2. Compare the State credit calculated in step (d) with the combined local credit calculated in (e)(2)(a). Issue the greater of the two amounts of credit, and print the results where voucher/certificates are used in the following manner.
   1. If the State tax credit is greater, identify the amount on the voucher/certificate as a State tax credit only.
   2. If the local Hold Harmless credit is greater, print the State and municipal tax credit amounts as such, and the excess over the State tax credit amount as the County tax