S.Amdt. 4321

This amendment, submitted by Mr. Warnock, aims to add a refundable credit for rent paid for a principal residence to the bill H.R. 6644.

The amendment proposes the following changes and additions:

• Rent Credit: It creates a tax credit for individuals who pay rent on their main home that exceeds 30 percent of their gross income. The credit amount is based on an applicable percentage tied to the taxpayer's income level:
  • Not over $25,000: 100 percent
  • Over $25,000 to $50,000: 75 percent
  • Over $50,000 to $75,000: 50 percent
  • Over $75,000 to $100,000: 25 percent
  • Over $100,000: 0 percent
• High-Cost Areas: For residences in areas designated by the Secretary of Housing and Urban Development as having high construction, land, or utility costs, the income brackets in the table above are increased by $25,000.
• Rent Limits: The credit is limited by 100 percent of the small area fair market rent (including utility allowance) as published by the Department of Housing and Urban Development.
• Subsidized Housing: Individuals in government-subsidized housing can elect a different credit equal to 1/12 of the non-subsidized rent they paid during the year.
• Advance Payments: The amendment establishes a program allowing taxpayers to receive the credit through monthly advance payments from July of one year through June of the next.
• Effective Date: These changes would apply to taxable years beginning after December 31, 2025.