Title: Rent Relief Act of 2018
Policy area: Taxation

Summary:
Rent Relief Act of 2018
This bill amends the Internal Revenue Code to allow a refundable tax credit for individuals who pay rent for a principal residence that exceeds 30% of the individual's gross income for the taxable year.
The amount of the credit ranges from 25% to 100% of the excess rent, depending on the gross income of the taxpayer. The credit is not available for taxpayers with gross income that exceeds $100,000 ($125,000 for a taxpayer whose principal residence is located in a high-cost area, as defined by the bill). Rent that exceeds 150% of the fair market rent (including the utility allowance) for the residence may not be taken into account for the purpose of determining the amount of the credit.
For individuals who reside in government-subsidized housing, the bill allows a credit equal to 1/12 of the rent paid by the taxpayer (and not subsidized under the program) during the year with respect to the residence.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3250 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3250

   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 SENATE OF THE UNITED STATES

                             July 19, 2018

   Ms. Harris (for herself, Mrs. Feinstein, Mr. Blumenthal, and Ms. 
    Hassan) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rent Relief Act of 2018''.

SEC. 2. REFUNDABLE CREDIT FOR RENT PAID FOR PRINCIPAL RESIDENCE.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 36B the following 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 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 (including the utility allowance) 
applicable to the residence involved (as most recently published, as of 
the beginning of the taxable year, by the Department of Housing and 
Urban Development).
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Applicable percentage.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the applicable percentage shall be 
                determined in accordance with the following 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 located in an 
                area for which, under the rule published in the Federal 
                Register on November 16, 2016 (81 Fed. Reg. 80567), the 
                small area fair market rent is used for purposes of the 
                Housing Choice Voucher Program, the table contained in 
                subparagraph (A) shall be applied by substituting 
                `$125,000' for `$100,000' each place it appears.
            ``(2) Partial year residence.--The Secretary 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 residence for only a portion of the taxable 
        year.
            ``(3) Special rule for individuals residing in government-
        subsidized housing.--In the case of a principal residence--
                    ``(A) the rent with respect to which is subsidized 
                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 imposed 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 account for purposes of 
        determining the utility allowance under section 
        42(g)(2)(B)(ii).''.
    (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 inserting after the item relating to section 36B the 
following new item:

``Sec. 36C. Rent paid for principal residence.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to taxable years beginning after December 31, 2017.
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