Bill > S2554

This bill, the Renters Tax Credit Act of 2021, would amend the Internal Revenue Code to provide a refundable tax credit to taxpayers who provide rent reductions to their tenants under state rental reduction programs. The key provisions of the bill include: - Establishing a new tax credit, called the "Renters Credit," that would allow taxpayers to claim a credit against their taxes for providing rent reductions to eligible tenants in qualified residential rental buildings. The credit amount would be based on the difference between the market rent and the reduced rent paid by the eligible tenant. - Requiring states to create rental reduction credit allocation plans to administer the program, including setting criteria for allocating credits and monitoring compliance. - Requiring qualified rental reduction agreements between the state and the building owner that set terms like the number of eligible units, the credit period, and tenant protections. - Allowing partnerships and S corporations to receive a direct payment from the IRS instead of claiming the tax credit. - Including the rental credit amount in the taxpayer's gross income but excluding it from alternative minimum taxable income. The overall goal of the bill is to provide financial incentives for landlords to offer reduced rents to lower-income tenants, helping to improve housing affordability.

Budget and Finance

https://www.congress.gov/bill/117th-congress/senate-bill/2554/all-info