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Tax Credit for Renters: Refundable Relief for High Housing Costs.

This Act establishes a new, refundable tax credit for individuals who rent their principal residence. Citizens whose rent exceeds 30% of their adjusted gross income (AGI) will be eligible to recover a portion of those costs, aiming to alleviate the financial burden of high rental prices. Furthermore, the law allows for monthly advance payments of this credit, providing immediate financial relief to eligible households.
Key points
New Renter Tax Credit: Allows taxpayers to claim a credit for rent paid on their principal residence that exceeds 30% of their Adjusted Gross Income (AGI).
Credit Amount Varies by Income: The percentage of the excess rent that can be claimed ranges from 100% (for AGI under $25,000) down to 0% (for AGI over $100,000).
Monthly Advance Payments: Taxpayers can elect to receive monthly advance payments of the credit, providing ongoing financial support rather than a lump sum at tax time.
Rent Cap: The amount of rent considered for the credit is capped at 100% of the small area fair market rent (FMR) for the residence location.
Outreach Funding: $50 million is appropriated to the IRS for community outreach to ensure eligible households are aware of and enroll in the new Renter Tax Credit program.
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Expired
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Additional Information
Print number: 118_HR_6721
Sponsor: Rep. Davis, Danny K. [D-IL-7]
Process start date: 2023-12-12
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Rent Relief Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_6721.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-12-12.

What are the main provisions?

Key points include:

  • New Renter Tax Credit: Allows taxpayers to claim a credit for rent paid on their principal residence that exceeds 30% of their Adjusted Gross Income (AGI).
  • Credit Amount Varies by Income: The percentage of the excess rent that can be claimed ranges from 100% (for AGI under $25,000) down to 0% (for AGI over $100,000).
  • Monthly Advance Payments: Taxpayers can elect to receive monthly advance payments of the credit, providing ongoing financial support rather than a lump sum at tax time.
  • Rent Cap: The amount of rent considered for the credit is capped at 100% of the small area fair market rent (FMR) for the residence location.
  • Outreach Funding: $50 million is appropriated to the IRS for community outreach to ensure eligible households are aware of and enroll in the new Renter Tax Credit program.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Davis, Danny K. [D-IL-7].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

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