Housing COST Act

such manner as the Secretary may provide) which does not aggregate to more 100 percent of such amount. ``(5) Dependents.--An individual who is a dependent (as defined in section 152) of the taxpayer for the taxable year shall be treated as a dependent for purposes of this section. ``(d) Reconciliation of Credit and Advance Payments.-- ``(1) In general.--The amount of the credit allowed under this section for any taxable year shall be reduced (but not below zero) by the aggregate amount of any advance payments of such credit under section 7527B for such taxable year. ``(2) Excess advance payments.--If the aggregate amount of advance payments under section 7527B for the taxable year exceeds the amount of the credit allowed under this section for such taxable year, determined without regard to paragraph (1), the tax imposed by this chapter for such taxable year shall be increased by the amount of such excess. ``(e) Termination.--No credit shall be allowed under subsection (a) for taxable years beginning after December 31, 2034.''. (b) Advance Payment.--Chapter 77 of the Internal Revenue Code of 1986 is amended by inserting after section 7527A the following new section: ``SEC. 7527B. ADVANCE PAYMENT OF RENTER TAX CREDIT. ``(a) In General.--Not later than 6 months after the date of the enactment of the Housing Cost of Living Support for Tenants Act of 2026, the Secretary shall establish a program for making advance payments of the credit allowed under section 36C on a monthly basis to any taxpayer who-- ``(1) the Secretary has determined will be allowed such credit for the taxable year, and ``(2) has made an election under subsection (c). ``(b) Amount of Advance Payment.-- ``(1) In general.--For purposes of subsection (a), the amount of the monthly advance payment of the credit provided to a taxpayer during the applicable period shall be equal to the lesser of-- ``(A) an amount equal to-- ``(i) the amount of the credit which the Secretary has determined will be allowed to such taxpayer under section 36C for the taxable year ending in such applicable period, divided by ``(ii) 12, or ``(B) such other amount as is elected by the taxpayer. ``(2) Applicable period.--For purposes of this section, the term `applicable period' means the 12-month period from the month of July of the taxable year through the month of June of the subsequent taxable year. ``(c) Election of Advance Payment.--A taxpayer may elect to receive an advance payment of the credit allowed under section 36C for any taxable year by including such election on a timely filed return for the preceding taxable year. ``(d) Internal Revenue Service Notification.--The Internal Revenue Service shall take such steps as may be appropriate to ensure that taxpayers who are eligible to receive the credit under section 36C are aware of the availability of the advance payment of such credit under this section. ``(e) Regulations.--The Secretary may prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes this section.''. (c) Conforming Amendments.-- (1) Section 6211(b)(4) of such Code is amended-- (A) by inserting ``36C,'' after ``36B,'', and (B) by inserting ``7527B),'' after ``7527A,''. (2) Section 1324(b)(2) of title 31, United States Code, is amended-- (A) by inserting ``36C,'' after ``36B,'', and (B) by striking ``or 7527A'' and inserting ``7527A, or 7527B''. (3) The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item: ``Sec. 36C. Renter tax credit.''. (4) The table of sections for chapter 77 of such Code is amended by inserting after the item relating to section 7527A the following new item: ``Sec. 7527B. Advance payment of renter tax credit.''. (d) Effective Date.--The amendments made by this section shall apply with respect to taxable years beginning after December 31, 2026. (e) Community Outreach.--The Secretary of the Treasury (or the Secretary's designee) shall carry out an outreach program to ensure taxpayers are aware of eligibility for the renter tax credit allowed under section 36C of the Internal Revenue Code of 1986 (including the advance payment of such credit under section 7527B of such Code). Such program shall include program outreach, data sharing arrangements, systems changes, forms changes, and related efforts, and efforts by Federal agencies to facilitate the cross-enrollment of beneficiaries of other programs in such credit, including by establishing intergovernmental cooperative agreements with States and local governments, tribal governments, and possessions of the United States. Such outreach may be achieved through Federal agencies to State and local governments, tribal governments, and possessions of the United States, and private entities, including organizations dedicated to free tax return preparation. <all>