Bill · S. 968· Senate(119-S-968)
Rent Relief Act of 2025
- Introduced
- 3/11/2025
- Last activity
- 3/11/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Raphael Warnock
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Rent Relief Act of 2025 aims to amend the Internal Revenue Code of 1986 to provide a tax credit for individuals who lease their principal residence. This credit is available to those who pay rent exceeding 30 percent of their gross income. The amount of the credit is determined by a percentage based on the taxpayer's gross income level. In certain high-cost areas, the income thresholds for the credit are increased by $25,000. The bill also establishes a system for monthly advance payments of the credit. These changes are intended to take effect for taxable years beginning after December 31, 2025.
Yes· 3 of 7
Would households on low incomes be better off under this?+7
The bill offers significant relief to those paying a high percentage of their income on rent.
Does this make housing cost less?+7
The bill provides direct financial relief to renters, making housing more affordable for those with high rent-to-income ratios.
Does this cut taxes for middle-income families?+6
The bill provides a refundable tax credit for renters whose rent exceeds 30% of their income, effectively lowering their tax burden.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Financial Relief for Renters: Individuals who pay rent that exceeds 30 percent of their gross income can receive a tax credit against their tax liability (Section 2(a)).
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Increased Support in Expensive Regions: For people living in areas with high construction, land, or utility costs, the income thresholds used to determine the credit percentage are increased by $25,000 (Section 2(a)(1)(B)).
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Monthly Income Assistance: The bill allows for an advance payment program where taxpayers can receive the credit in monthly installments (Section 2(b)(a)).
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Alternative Credit for Subsidized Housing: Individuals in government-subsidized housing can elect to receive a credit equal to 1/12 of the rent they pay that is not covered by the subsidy (Section 2(a)(3)).
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Broad Definition of Rent: The credit can include amounts paid for certain utilities (Section 2(a)(4)).
Potential Negative Impacts for People
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Limits on Credit Amount: The credit amount is capped so that rent in excess of 100 percent of the small area fair market rent (including utility allowance) is not taken into account (Section 2(a)(b)).
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Income Restrictions: Individuals with a gross income over $100,000 are not eligible for the credit under the standard table (Section 2(a)(1)(A)).
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Credit Reductions: The total credit amount for a year will be reduced by any advance payments already received during that year (Section 2(a)(d)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+7Good For Middle Class Households+5Good For Urban Residents+4
- Social Issues And Justice
- Improves Affordable Housing+7Improves Poverty Reduction+5Reduces Homelessness+3
- Economy And Finance
- Reduces Middle Class Taxes+6
- 3/11/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate