Renters Tax Credit Legislation Introduced in House
Rep. Charles Rangel, D-N.Y., recently introduced the Renters Tax Credit Act of 2014 (H.R. 4479), which would provide a tax credit to apartment owners and lenders that subsidize the cost of lower rents for low-income households. The renter’s credit combines the concepts of the Low-Income Housing Tax Credit and project-based rental assistance and would cover the difference between the fair market rent of a unit and 30 percent of the qualified renter’s income.
A qualified renter would be any family unit with income no larger than the greater of 60 percent of area median income or 150 percent of the federal poverty line. The total credit allocation would be equal to approximately $5.65 billion and would be administered by state housing finance agencies on a per-capita basis similar to the LIHTC. H.R. 4479 has no additional co-sponsors and was referred to the House Committee on Ways and Means for consideration.