The Rent Relief Act is the first major government response to the country?s growing affordability crisis. Homeownership remains increasingly out of reach for more and more Americans, yet homeowners reap most of the country?s tax savings and benefits, which do not apply to renters. That could change under a new bill which would extend tax credits to renters?the first major response from federal legislators to address a growing housing affordability crisis.
Under the Rent Relief Act, a refundable tax credit would be available to those who make less than $100,000 a year and spend at least 30 percent of their income on rent, including utilities. The credit offered would range based on income and household size, and in pricier cities the income threshold would be raised to $125,000. Plus, people who already live in government-subsidized housing would be able to claim the value of their rent as a refundable tax credit as well. Senator Kamala Harris, a Democrat from California, introduced the bill, which she says could end up impacting over 13 million families. ?America?s affordable housing crisis has left too many families behind who struggle each month to keep a roof over their head,? reads a statement from Harris. ?This bill will ensure no family is priced out of the basic security of a place to live.?
The credit would help many people living in cities, where a growing portion of the country's urban population is severely rent-burdened?according to a New York University s...