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Rent Relief Act: Tax Credit for High Rent Payments

This act introduces a new tax credit for individuals paying high rent for their primary residence. If your rent exceeds 30% of your adjusted gross income, you may be eligible for a refundable credit on the excess amount. The law also allows for monthly advance payments of this credit.
Key points
You can receive a tax credit if your rent for your main home is more than 30% of your income.
The credit amount depends on your income; lower incomes receive a higher percentage back.
You can choose to receive monthly advance payments of this credit to help with ongoing costs.
The credit is capped at 100% of the fair market rent for your area to prevent overpayments.
These changes apply to tax years beginning after December 31, 2021.
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Additional Information
Print number: 117_HR_8357
Sponsor: Rep. Davis, Danny K. [D-IL-7]
Process start date: 2022-07-13