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119-hr-10613119th CongressWALLET

Housing COST Act

Sponsored By: Representative Tran, Derek [D-CA-45]

Introduced

Summary

This bill would create a new refundable renter tax credit that pays renters a share of their rent and offers an option for monthly advance payments to smooth household cash flow.

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  • Renters: The credit would be refundable and capped at $4,000 per year. Rent counted toward the credit excludes amounts above 100% of the local small area fair market rent.
  • Families with dependents: The share of rent you can claim rises with dependents, ranging from 8.5% to 11% depending on household size.
  • Eligibility and delivery: No credit is allowed for taxpayers with adjusted gross income over $150,000 in the prior year. The bill would let eligible taxpayers receive monthly advance payments from July through the following June and requires IRS outreach and coordination with federal, state, local, tribal, and nonprofit partners.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Monthly advance renter payments

If enacted, the Treasury would set up monthly advance payments of the renter credit within six months of enactment. Each monthly advance would be the lesser of (the year's credit ÷ 12) or an amount you elect. Advances would be paid July through June and you would elect them on a timely filed return for the prior year. Total advances would reduce your annual credit dollar-for-dollar, and if advances exceeded your final credit your tax would increase by the excess. The advance program would apply for tax years beginning after December 31, 2026.

Refundable renter tax credit

If enacted, this bill would create a refundable renter tax credit for your main home. You would get an applicable percentage of rent paid, up to $4,000 per year. The percent rises with dependents: 1=8.5%, 2=9%, 3=9.5%, 4=10%, 5=10.5%, 6+ =11%. Only rent up to 100% of the HUD small-area fair market rent would count and rent may include certain utilities. No credit would be allowed if your adjusted gross income in the prior year exceeded $150,000. The credit would apply to tax years beginning after December 31, 2026 and end for years beginning after December 31, 2034.

Treasury outreach to renters

If enacted, the Secretary of the Treasury would be required to run outreach to tell renters about the renter credit and the monthly advance option. Outreach could include data sharing, systems and forms changes, and agreements with states, local and tribal governments. The program could also coordinate with private free tax-preparation groups to help people enroll. This outreach would begin upon enactment.

Sponsors & CoSponsors

Sponsor

Tran, Derek [D-CA-45]

CA • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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