The Rent Relief Act of 2025 proposes a refundable tax credit for renters paying over 30% of their income on rent.
The Rent Relief Act of 2025 amends the Internal Revenue Code to introduce a refundable tax credit for individuals who lease their principal residence and pay rent exceeding 30% of their gross income. The credit amount is based on an applicable percentage of the excess rent, with higher percentages for lower incomes. Renters can elect to receive advance monthly payments of the credit. The credit is limited to 100% of the small area fair market rent. The Internal Revenue Service will notify eligible taxpayers about the advance payment option.
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