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S968119th CongressWALLET

Rent Relief Act of 2025

Sponsored By: Senator Warnock, Raphael G. [D-GA]

Introduced

Summary

Refundable rent credit to help renters whose housing costs eat up their income. The bill would also create a monthly advance-payment option so eligible renters can get credit money during the year.

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  • Families and households would get a credit that covers part of rent above what they can afford. The credit phases from 100% for households with gross income at or below $25,000 down to 0% for incomes above $100,000.
  • Renters could elect monthly advance payments covering July through the following June. The Secretary would have six months to set up the program and monthly advances are limited to the estimated annual credit divided by 12 or the amount the taxpayer chooses.
  • Credit calculations are capped so only rent up to 100% of the Small Area Fair Market Rent, including the HUD utility allowance, counts. People in government-subsidized housing may instead elect a credit equal to one-twelfth of the unsubsidized rent they pay during the year.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Refundable rent credit for renters

This bill would create a refundable tax credit for people who rent their main home. You would get the credit when your rent is more than 30% of your gross income. Income bands set the percentage: ≤$25,000 → 100%; $25,001–$50,000 → 75%; $50,001–$75,000 → 50%; $75,001–$100,000 → 25%; >$100,000 → 0%. In HUD-designated high-cost areas, each dollar threshold is $25,000 higher. Rent above 100% of the HUD small-area fair market rent (including HUD utility allowance) is ignored when computing the credit. If you live in subsidized housing, you could elect an alternate calculation based on non-subsidized rent. Any advance payments you received would reduce your credit for the year. The credit would apply to tax years starting after December 31, 2025.

Monthly advance payments for renters

This bill would require Treasury to set up monthly advance payments of the rent credit within six months after enactment. If the IRS determines you will be allowed the credit and you elect advances on a timely prior-year return, you could get monthly payments. Each monthly payment would be the lesser of (A) the IRS's estimate of your annual credit divided by 12, or (B) the monthly amount you elect. Advance payments would cover July of the taxable year through the following June. The IRS would notify eligible taxpayers and may issue rules to run the program.

Add rent credit to tax rules

This bill would add the new rent credit to certain tax notice and offset rules. If enacted, the IRS could treat the credit like similar refundable credits for deficiency, offset, and collection processes. The change would apply to tax years beginning after December 31, 2025.

Sponsors & CoSponsors

Sponsor

Warnock, Raphael G. [D-GA]

GA • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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