Wyden, Brown Introduce Bill to Establish Low-Income Renters Tax Credit
Sens. Ron Wyden, D-Oregon, and Sherrod Brown, D-Ohio, introduced legislation to establish a renters tax credit for low-income households. According to a press release from Wyden’s office, the Renters Tax Credit Act of 2021 would authorize states to allocate an amount of renters credits to owners or developers of rental housing for a credit period of up to 15 years. Owners would then be required to rent those units to families earning below the federal poverty line or below 30% of the local median income. Renters would pay no more than 30% of their income and the building owner would receive a tax credit to cover the gap between the market rent and what the renter pays. The credits would be refundable, meaning nonprofits and owners with limited tax liability could claim the credits directly. The credits could be used in buildings that have low-income housing tax credit (LIHTC) financing. Text of the legislation was not available at the time of this writing.
Affordable housing legislation will be among the topics at the Novogradac 2021 Affordable Housing Tax Credit and Bond Conference, Sept. 30-Oct. 1 in Nashville.