Rent relief legislation introduced in Senate

The bill proposes a tax credit for renters who spend more than 30% of their income on housing

By Francis Monfort

23 Jul 2018

Renters who spend more than 30% of their income on housing would be eligible for a tax credit under new legislation introduced in the Senate.

Sen. Kamala Harris (D-Calif.) introduced the Rent Relief Act, which seeks to provide rent relief for families struggling to pay their bills. Sens. Dianne Feinstein (D-Calif.), Richard Blumenthal (D-Conn.), and Maggie Hassan (D-N.H.) joined the introduction.

Under the bill, individuals who live in rental housing and pay more than 30% of their gross income for the taxable year on their rent, including utilities would be eligible for a refundable tax credit. A renter family’s annual income, as well as a rate of the federal government’s established fair market rent controls, will be taken into account to determine the total amount spent yearly by an individual on rent.

Additionally, the legislation proposes that a refundable tax credit equivalent to the value of one month’s rent be made available to individuals who live in government-subsidized rental housing. Subsidized rent is normally capped at 30% of a person’s income, making them eligible for the tax benefit for rent-burdened residents.

“America’s affordable housing crisis has left too many families behind who struggle each month to keep a roof over their head,” Harris said. “This bill will ensure no family is priced out of the basic security of a place to live. Bolstering the economic security of working families would strengthen our country and increase opportunity.”