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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10613 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 10613
To amend the Internal Revenue Code of 1986 to allow for a credit
against tax for rent paid on the personal residence of the taxpayer.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 24, 2026
Mr. Tran introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow for a credit
against tax for rent paid on the personal residence of the taxpayer.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Housing Cost of Living Support for
Tenants Act of 2026'' or the ``Housing COST Act''.
SEC. 2. REFUNDABLE CREDIT FOR RENT PAID FOR PRINCIPAL RESIDENCE.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 36B the following new section:
``SEC. 36C. RENTER TAX CREDIT.
``(a) In General.--In the case of an individual who leases the
individual's principal residence (within the meaning of section 121)
during the taxable year, there shall be allowed as a credit against the
tax imposed by this subtitle for such taxable year an amount equal to
the applicable percentage of the rent paid by such individual with
respect to the lease of such residence.
``(b) Limitations.--
``(1) Dollar limit.--The credit allowed under subsection
(a) for any taxable year shall not exceed $4,000.
``(2) Credit limited by small area fair market rent.--
Solely for purposes of determining the amount of the credit
allowed under subsection (a) with respect to a residence for
the taxable year, there shall not be taken into account rent in
excess of an amount equal to 100 percent of the small area fair
market rent applicable to the residence involved (as most
recently published, as of the beginning of the taxable year, by
the Department of Housing and Urban Development).
``(3) Adjusted gross income limitation.--No credit shall be
allowed under this section with respect to a taxpayer for a
taxable year if the taxpayer's adjusted gross income exceeds
$150,000 for the preceding taxable year.
``(c) Definitions and Special Rules.--For purposes of this
section--
``(1) Applicable percentage.--The term `applicable
percentage' means the percentage determined in accordance with
the following table:
The applicable
``If the taxpayer has the following percentage is:
number of dependents:
1 dependent.................................. 8.5 percent
2 dependents................................. 9 percent
3 dependents................................. 9.5 percent
4 dependents................................. 10 percent
5 dependents................................. 10.5 percent
6 or more dependents......................... 11 percent
``(2) Partial year residence.--The Secretary shall
prescribe such rules as are necessary to carry out the purposes
of this section for taxpayers with respect to whom a residence
is a principal residence for only a portion of the taxable
year.
``(3) Rent.--The term `rent' includes any amount paid for
utilities of a type taken into account for purposes of
determining the utility allowance under section
42(g)(2)(B)(ii).
``(4) Married individuals filing separate returns.--In the
case of individuals who are married to each other, have the
same principal residence, and do not file a joint return for
the taxable year, the credit determined under this section with
respect to each such individual shall be 50 percent of the
amount of the credit which would be determined under this
section if such individuals filed a joint return, unless such
individuals agree on a different division of such credit (in
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.
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