I 
118TH CONGRESS 
1ST SESSION H. R. 6721 
To amend the Internal Revenue Code of 1986 to allow for a credit against 
tax for rent paid on the personal residence of the taxpayer. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 12, 2023 
Mr. DAVIS of Illinois (for himself, Mr. GOMEZ, Mr. PETERS, Mr. PANETTA, 
Ms. JACOBS, Mr. CARSON, Mr. MULLIN, Ms. LEE of California, Ms. 
NORTON, Mr. EVANS, Mr. THANEDAR, Ms. TLAIB, Ms. CROCKETT, Mrs. 
WATSON COLEMAN, Ms. JACKSON LEE, Mr. CARTER of Louisiana, Mr. 
LIEU, Mr. JOHNSON of Georgia, Ms. SEWELL, Ms. WILSON of Florida, 
and Ms. SCHAKOWSKY) introduced the following bill; which was referred 
to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow for 
a credit against tax for rent paid on the personal resi-
dence of the taxpayer. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Rent Relief Act of 
2023’’. 
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SEC. 2. REFUNDABLE CREDIT FOR RENT PAID FOR PRIN-
CIPAL RESIDENCE. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 36B the fol-
lowing new section: 
‘‘SEC. 36C. RENTER TAX CREDIT. 
‘‘(a) IN GENERAL.—In the case of an individual who 
leases the individual’s principal residence (within the 
meaning of section 121) during the taxable year and who 
pays rent with respect to such residence in excess of 30 
percent of the taxpayer’s adjusted gross income for such 
taxable year, there shall be allowed as a credit against the 
tax imposed by this subtitle for such taxable year an 
amount equal to the applicable percentage of such excess. 
‘‘(b) CREDIT LIMITED BY 100 PERCENT OF SMALL 
AREA FAIR MARKET RENT.—Solely for purposes of deter-
mining the amount of the credit allowed under subsection 
(a) with respect to a residence for the taxable year, there 
shall not be taken into account rent in excess of an 
amount equal to 100 percent of the small area fair market 
rent (including the utility allowance) applicable to the resi-
dence involved (as most recently published, as of the be-
ginning of the taxable year, by the Department of Housing 
and Urban Development). 
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‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) APPLICABLE
PERCENTAGE.—The term 
‘applicable percentage’ means the percentage deter-
mined in accordance with the following table: 
The applicable 
‘‘If the taxpayer’s adjusted gross 
income is: 
percentage is: 
Not over $25,000 ..............................................................
100 percent
Over $25,000, but not over $50,000 ................................
75 percent
Over $50,000, but not over $75,000 ................................
50 percent
Over $75,000, but not over $100,000 ..............................
25 percent
Over $100,000 ..................................................................
0 percent. 
‘‘(2) PARTIAL
YEAR
RESIDENCE.—The Sec-
retary shall prescribe such rules as are necessary to 
carry out the purposes of this section for taxpayers 
with respect to whom a residence is a principal resi-
dence for only a portion of the taxable year. 
‘‘(3) RENT.—The term ‘rent’ includes any 
amount paid for utilities of a type taken into ac-
count for purposes of determining the utility allow-
ance under section 42(g)(2)(B)(ii). 
‘‘(4) MARRIED INDIVIDUALS FILING SEPARATE 
RETURNS.—In the case of individuals who are mar-
ried to each other, have the same principal resi-
dence, and do not file a joint return for the taxable 
year, the credit determined under this section with 
respect to each such individual shall be 50 percent 
of the amount of the credit which would be deter-
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mined under this section if such individuals filed a 
joint return, unless such individuals agree on a dif-
ferent division of such credit (in such manner as the 
Secretary may provide) which does not aggregate to 
more 100 percent of such amount. 
‘‘(d) RECONCILIATION
OF CREDIT
AND ADVANCE 
PAYMENTS.—The amount of the credit allowed under this 
section for any taxable year shall be reduced (but not 
below zero) by the aggregate amount of any advance pay-
ments of such credit under section 7527B for such taxable 
year.’’. 
(b) ADVANCE PAYMENT.—Chapter 77 of the Internal 
Revenue Code of 1986 is amended by inserting after sec-
tion 7527A the following new section: 
‘‘SEC. 7527B. ADVANCE PAYMENT OF RENTER TAX CREDIT. 
‘‘(a) IN GENERAL.—Not later than 6 months after 
the date of the enactment of the Rent Relief Act of 2023, 
the Secretary shall establish a program for making ad-
vance payments of the credit allowed under section 36C 
on a monthly basis to any taxpayer who— 
‘‘(1) the Secretary has determined will be al-
lowed such credit for the taxable year, and 
‘‘(2) has made an election under subsection (c). 
‘‘(b) AMOUNT OF ADVANCE PAYMENT.— 
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‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the amount of the monthly advance payment of 
the credit provided to a taxpayer during the applica-
ble period shall be equal to the lesser of— 
‘‘(A) an amount equal to— 
‘‘(i) the amount of the credit which 
the Secretary has determined will be al-
lowed to such taxpayer under section 36C 
for the taxable year ending in such applica-
ble period, divided by 
‘‘(ii) 12, or 
‘‘(B) such other amount as is elected by 
the taxpayer. 
‘‘(2) APPLICABLE
PERIOD.—For purposes of 
this section, the term ‘applicable period’ means the 
12-month period from the month of July of the tax-
able year through the month of June of the subse-
quent taxable year. 
‘‘(c) ELECTION OF ADVANCE PAYMENT.—A taxpayer 
may elect to receive an advance payment of the credit al-
lowed under section 36C for any taxable year by including 
such election on a timely filed return for the preceding 
taxable year. 
‘‘(d) INTERNAL
REVENUE
SERVICE
NOTIFICA-
TION.—The Internal Revenue Service shall take such 
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steps as may be appropriate to ensure that taxpayers who 
are eligible to receive the credit under section 36C are 
aware of the availability of the advance payment of such 
credit under this section. 
‘‘(e) REGULATIONS.—The Secretary may prescribe 
such regulations or other guidance as may be necessary 
or appropriate to carry out the purposes this section.’’. 
(c) CLERICAL AMENDMENTS.— 
(1) IN
GENERAL.—The table of sections for 
subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by 
inserting after the item relating to section 36B the 
following new item: 
‘‘Sec. 36C. Renter tax credit.’’. 
(2) ADVANCE PAYMENT.—The table of sections 
for chapter 77 of such Code is amended by inserting 
after the item relating to section 7527A the fol-
lowing new item: 
‘‘Sec. 7527B. Advance payment of renter tax credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to taxable years begin-
ning after December 31, 2023. 
(e) COMMUNITY OUTREACH.—Immediately upon the 
enactment of this Act, in addition to amounts otherwise 
available, there are appropriated out of any money in the 
Treasury not otherwise appropriated $50,000,000 to re-
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main available until 5 years after the enactment of this 
Act for necessary expenses for the Internal Revenue Serv-
ice to support efforts to increase enrollment of eligible 
households in the Renter Tax Credit allowed under section 
36C of the Internal Revenue Code of 1986 (including the 
advance payment of such credit under section 7527B of 
such Code), including but not limited to program out-
reach, costs of data sharing arrangements, systems 
changes, forms changes, and related efforts, and efforts 
by Federal agencies to facilitate the cross-enrollment of 
beneficiaries of other programs in such Renter Tax Credit, 
including by establishing intergovernmental cooperative 
agreements with States and local governments, tribal gov-
ernments, and possessions of the United States: Provided, 
that such amount shall be available in addition to any 
amounts otherwise available: Provided further, that these 
funds may be awarded by Federal agencies to State and 
local governments, tribal governments, and possessions of 
the United States, and private entities, including organiza-
tions dedicated to free tax return preparation. 
Æ 
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