1986 is amended by inserting after section 36B the fol-
lowing new section: 
‘‘SEC. 36C. RENT PAID FOR PRINCIPAL RESIDENCE 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 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 150 PERCENT OF FAIR 
MARKET RENT.—Solely for purposes of determining 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 150 percent of the fair market rent applicable to the 
residence involved (as most recently published, as of the 
beginning of the taxable year, by the Department of Hous-
ing and Urban Development). 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) APPLICABLE PERCENTAGE.—The applica-
ble percentage shall be determined in accordance 
with the following table: 
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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, but not over $125,000 ............................
10 percent
Over $125,000 ..................................................................
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) SPECIAL RULE FOR INDIVIDUALS RESID-
ING IN GOVERNMENT-SUBSIDIZED HOUSING.—In the 
case of a principal residence— 
‘‘(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.’’. 
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(b) CLERICAL AMENDMENT.—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 in-
serting after the item relating to section 36B the following 
new item: 
‘‘Sec. 36C. Rent paid for principal residence credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to taxable years begin-
ning after December 31, 2017. 
Æ 
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