Allows gross income tax credits to certain renters whose rent exceeds 35 percent of gross income.
What changed between versions
New 'qualified taxpayer' definition creates two income tiers: unmarried filers (not head of household or surviving spouse) remain capped at $60,000 gross income, while married filing jointly, head of household, and surviving spouse filers are now eligible up to $90,000 gross income.
A separate credit schedule was added for married filing jointly, head of household, and surviving spouse filers with higher income thresholds: 100 percent of excess rent (up to $1,000) if income is $75,000 or less in a high-cost area or $37,500 or less elsewhere; 75 percent if income is between $75,000 and $90,000 in a high-cost area or between $37,500 and $75,000 elsewhere; 50 percent if income is between $75,000 and $90,000 in a non-high-cost area.
New section d. establishes rules for married individuals filing separately: eligibility is based on combined gross income and total rent paid by both spouses; if both are qualified taxpayers in the same residence, their combined credits are capped at $1,000 and allocated proportionally to each person's share of rent or by written election.
The original single credit schedule (applicable to all taxpayers with income up to $60,000) was restructured into two parallel schedules - one for unmarried filers retaining the original thresholds, and one for married/head-of-household/surviving spouse filers with the new higher thresholds.
Senator Cryan was added as a co-sponsor.
