Circuit-Breakers: Circuit breakers are flexible and easily administered in conjunction with the state income tax. Circuit breakers improve property tax equity by targeting relief to those in greatest need and, furthermore, are financed from state, not local, revenue. They provide no incentive, however, for improved property tax administration and may encourage greater use of local property taxes as some property tax costs are shifted to the state. Choices that states make in setting up their circuit breakers include sliding scale or threshold, elderly only or more general, inclusion of renters or limited to owners, relief by direct payment or by income tax credit, breadth of income inclusion in defining taxpaying capacity, inclusion of homestead property only or other property also, and generosity of relief.