[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6721 Introduced in House (IH)]
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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 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 2023''.
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. 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 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 100 percent of the small area 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.--The term `applicable
percentage' means the percentage determined in accordance with
the following table:
The applicable
``If the taxpayer's adjusted gross percentage is:
income 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 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) 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).
``(4) Married individuals filing separate returns.--In the
case of individuals who are married to each other, have the
same principal residence, 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 determined under this
section if such individuals filed a joint return, unless such
individuals agree on a different 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
payments 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 section 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 advance payments of the credit allowed under
section 36C on a monthly basis to any taxpayer who--
``(1) the Secretary has determined will be allowed 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 applicable 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 allowed to
such taxpayer under section 36C for the taxable
year ending in such applicable 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 taxable year through the month of June of
the subsequent taxable year.
``(c) Election of Advance Payment.--A taxpayer may elect to receive
an advance payment of the credit allowed 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 Notification.--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) 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 following 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 beginning 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 remain available until 5 years after the enactment of this Act for
necessary expenses for the Internal Revenue Service 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 outreach, 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 governments, 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 organizations dedicated
to free tax return preparation.
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