I 
116TH CONGRESS 
1ST SESSION H. R. 2169 
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 
APRIL 9, 2019 
Mr. DANNY K. DAVIS of Illinois (for himself, Mr. GOMEZ, and Mr. PETERS) 
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 
2019’’. 
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 
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1986 is amended by inserting after section 36B the fol-
lowing new section: 
‘‘SEC. 36C. RENT PAID FOR PRINCIPAL RESIDENCE. 
‘‘(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 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). 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) APPLICABLE PERCENTAGE.— 
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‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the applicable percentage 
shall be determined in accordance with the fol-
lowing table: 
The applicable 
‘‘If 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. 
‘‘(B) HIGH-COST AREAS.—In the case of 
an individual whose principal residence is lo-
cated in an area for which, under the rule pub-
lished in the Federal Register on November 16, 
2016 (81 Fed. Reg. 80567), the small area fair 
market rent is used for purposes of the Hous-
ing Choice Voucher Program, each of the dollar 
amounts in the table contained in subparagraph 
(A) shall be increased by $25,000. 
‘‘(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) SPECIAL RULE FOR INDIVIDUALS RESID-
ING IN GOVERNMENT-SUBSIDIZED HOUSING.—In the 
case of a principal residence— 
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‘‘(A) the rent with respect to which is sub-
sidized under a Federal, State, local, or tribal 
program, and 
‘‘(B) with respect to which the taxpayer 
elects the application of this paragraph, 
in lieu of the credit determined under subsection (a), 
there shall be allowed as a credit against the tax im-
posed by this subtitle for such taxable year an 
amount equal to 1⁄12 of the amount of rent paid by 
the taxpayer (and not subsidized under any such 
program) during the taxable year with respect to 
such residence. 
‘‘(4) 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). 
‘‘(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 7527A for such taxable 
year.’’. 
(b) ADVANCE PAYMENT.—Chapter 77 of the Internal 
Revenue Code of 1986 is amended by inserting after sec-
tion 7527 the following new section: 
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‘‘SEC. 7527A. ADVANCE PAYMENT OF MIDDLE CLASS TAX 
CREDIT. 
‘‘(a) IN GENERAL.—Not later than 6 months after 
the date of the enactment of the Rent Relief Act of 2019, 
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.— 
‘‘(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 
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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 
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) AUTHORITY.—The Secretary may prescribe such 
regulations or other guidance as may be appropriate or 
necessary for the purposes of carrying out 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. Rent paid for principal residence.’’. 
(2) ADVANCE PAYMENT.—The table of sections 
for chapter 77 of such Code is amended by inserting 
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