Bill > S968

This bill introduces a new refundable tax credit for renters who pay more than 30% of their gross income in rent for their principal residence. The credit amount varies based on income levels, with individuals earning less than $25,000 receiving a 100% credit, and the credit percentage decreasing as income increases, ultimately becoming zero for those earning over $100,000. The bill allows for additional credit increases in high-cost areas, where income thresholds are raised by $25,000. A unique feature of the bill is an advance payment program where eligible taxpayers can receive monthly credit payments in advance, which they can elect when filing their previous year's tax return. The bill also includes special provisions for people in government-subsidized housing, allowing them to claim a credit based on the portion of rent they pay that is not subsidized. The credit takes into account rent and utility costs, and the Internal Revenue Service is tasked with establishing the program and notifying potentially eligible taxpayers. The Rent Relief Act of 2025 would become effective for tax years beginning after December 31, 2025, providing a potential financial relief mechanism for renters struggling with housing costs.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/968/all-info