Legislation Would Provide Credit to Rent-Burdened Taxpayers

Tuesday, August 22, 2017 - 3:30pm

Rep. Joseph Crowley, D-N.Y., introduced legislation this week to provide a refundable federal tax credit to people who pay more than 30 percent of their income for rent–considered “rent-burdened”–and for residents of government-subsidized properties, including those operating under the Low-Income Housing Tax Credit (LIHTC) program. The Rent Relief Act would provide a tax credit for a percentage of the difference (based on income) between 30 percent of a taxpayer’s income and the taxpayer’s rent, capped at 150 percent of the fair market rent. Residents of government-subsidized properties–which are capped at 30 percent of a renter’s income–would receive an annual credit equal to one month’s rent.