The Housing COST Act would create a refundable federal tax credit for people who rent their principal residence. The credit would be based on a percentage of eligible rent, including certain utility payments, and could not exceed $4,000 per year. The percentage ranges from 8.5% to 11% based on the number of dependents; the bill lists rates for taxpayers with at least one dependent. Rent above the local small area fair market rent would not count, and taxpayers whose adjusted gross income was over $150,000 in the prior year would not qualify. Eligible taxpayers could elect to receive advance monthly payments. The credit would apply to tax years beginning after 2026 and end after 2034.
If you qualify, you could claim the credit on your federal tax return or elect to receive advance payments. Advance payments would be reconciled with the credit allowed for that tax year, and excess advances would increase your tax. The bill also directs Treasury to conduct outreach about eligibility and advance payments.
The credit is capped at $4,000 per year for each eligible taxpayer. No publicly available information on the bill’s total federal cost.
No publicly available information.
No publicly available information.