Representative Scott Peters (D-CA), co-chair of the New Democrat Coalition Housing Task Force, introduced in the House H.R. 6671, the “Rent Relief Act of 2018,” to provide cost-burdened renters with a refundable tax credit. The bill is the House companion to legislation introduced in the Senate by Senator Kamala Harris in July.
The bill aims to reduce the rent burden on low income renters by creating a refundable tax credit for individuals who live in rental housing and who pay more than 30% of their gross income for the taxable year on their rent and utilities. Individuals living in government-subsidized rental housing would claim the value of one month’s rent as a refundable tax credit. This bill will reduce the cost burden on low income renters and allow individuals and families additional money to be spent on healthcare, education, child care, and other needs.
Representative Peters, who represents San Diego, explained that the bill is necessary “to provide short-term relief for renters, while local, state and federal governments work toward long-term solutions to our nation’s housing shortage.”
Congressional interest in a renters’ tax credit continues to grow. In addition to the legislation from Senator Harris and Representative Peters, proposals for a renters’ tax credit have been introduced by Senator Cory Booker (D-NJ) and Representative Joe Crowley (D-NY).
For a comparison of the renters’ tax credit proposals, see NLIHC’s factsheet at: https://bit.ly/2npi5K2
See Representative Peters’s press release about the bill at: https://bit.ly/2MkuLAC