Owner-occupied residents get two kinds of tax breaks. First, the percentage of market value subject to tax is less for a home than it is for some other kinds of property, which is called the homestead exemption. The second break is the homestead credit, in which the state pays 45 percent of the home-owner's tax bill up to a maximum of $325. People who rent are eligible for a 10 percent credit of their rent, up to a maximum of $120. The new circuit breaker proposal would replace the homestead and rent credits with a scheme tying state tax relief to household income. John Haynes, Governor Anderson's tax assistant, explains the theory.