“A bill to amend the Internal Revenue Code of 1986 to allow for a credit against tax for rent paid on the personal residence of the taxpayer.”
No CRS summary available for this bill.
This section establishes a new refundable tax credit under new IRC §36C for individuals who lease their principal residence and pay rent exceeding 30% of gross income, equal to an applicable percentage of such excess (not to exceed 100% of HUD small area fair market rent, including utility allowance). The applicable percentage is 100% of excess rent for gross income not over $25,000; 75% for over $25,000 but not over $50,000; 50% for over $50,000 but not over $75,000; 25% for over $75,000 but not over $100,000; and 0% above $100,000 (with each threshold increased by $25,000 in HUD-designated high-cost areas). Special rules apply for partial-year residences, government-subsidized housing (electing taxpayers receive a credit equal to 1/12 of unsubsidized rent paid monthly), and rent including specified utilities; the credit reconciles with advance payments. This section also requires IRS, within six months of enactment, to establish a program under new IRC §7527A for monthly advance payments of the credit (for the July-June period) to eligible electing taxpayers, equal to the lesser of the estimated annual credit divided by 12 or a taxpayer-elected amount (with IRS outreach on availability). Conforming and clerical amendments update IRC definitions, overpayment provisions, and tables of sections.