S. 968
119th CONGRESS 1st Session
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 · March 11 (legislative day, March 10), 2025 · Sponsor: Mr. Warnock · Committee: Committee on Finance
Table of contents
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 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—
- 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.
- In the case of a principal residence—
- The term 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).
rent
- For purposes of this section—
- (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 7527A for such taxable year.
- Reconciliation of credit and advance payments