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People & committees
Rep. Tran, Derek [D-CA-45] · D–CA
Legislative record
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Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Oct 2, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2026-09-24 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
This bill proposes a federal tax credit for people renting their main home. The amount would depend on rent and the number of dependents, with a $4,000 annual cap and no credit for taxpayers whose prior-year adjusted gross income exceeds $150,000. Eligible taxpayers could choose monthly advance payments. Those payments would reduce the credit available when filing taxes, and any overpayment would increase the tax owed.
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.
The credit allowed under subsection (a) for any taxable year shall not exceed $4,000.
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.
If the taxpayer has the following number of dependents:
the Secretary shall establish a program for making advance payments of the credit allowed under section 36C on a monthly basis
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.
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.
Section 1 gives the proposal the short titles “Housing Cost of Living Support for Tenants Act of 2026” and “Housing COST Act.”
This Act may be cited as the Housing Cost of Living Support for Tenants Act of 2026 or the Housing COST Act.
Section 2 would add a renter tax credit to the Internal Revenue Code. It describes the credit as refundable and bases it on rent paid by an individual leasing their main home, using the existing statutory definition of principal residence.
2. Refundable credit for rent paid for principal residence
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: 36C. Renter tax credit
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.
The proposed credit rates are 8.5% for one dependent, 9% for two, 9.5% for three, 10% for four, 10.5% for five, and 11% for six or more. The table supplies no rate for a taxpayer with zero dependents.
The term applicable percentage means the percentage determined in accordance with the following table: The applicable If the taxpayer has the following number of dependents: percentage is: 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
The credit would be capped at $4,000 per tax year. Rent counted in the calculation would also be capped at the residence’s applicable small area fair market rent—a local rent benchmark published by the Department of Housing and Urban Development—using the most recent publication available at the start of the tax year.
The credit allowed under subsection (a) for any taxable year shall not exceed $4,000.
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).
A taxpayer would receive no credit if their adjusted gross income—the tax-return income measure specified by the bill—exceeded $150,000 in the preceding tax year.
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.
Rent counted for the credit would include utility payments of the types covered by the existing utility-allowance provision cited in the bill. Dependents would be determined under Internal Revenue Code section 152.
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).
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.
The Secretary would have to issue rules for taxpayers whose residence is their main home for only part of the tax year.
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.
Married taxpayers sharing a main home but filing separately would each receive half the credit calculated as if they filed jointly. They could agree to another division through a process the Secretary may provide, but their combined shares could not exceed the joint-return amount.
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.
Advance payments would reduce the credit claimed for the tax year, but not below zero. If advances exceeded the credit actually allowed, the excess would be added to that year’s tax.
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.
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.
Within six months after enactment, the Secretary would have to establish monthly advance payments for taxpayers determined eligible for the credit who elect to receive advances.
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).
A monthly advance would equal one-twelfth of the credit the Secretary determines will be allowed for the tax year ending within the applicable payment period, or a lower amount chosen by the taxpayer. The payment period would run from July of one tax year through June of the next.
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.
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.
Taxpayers could elect advance payments on a timely filed tax return for the preceding tax year.
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.
The Internal Revenue Service would have to take appropriate steps to inform eligible taxpayers about advance payments. The Secretary could issue regulations or other guidance to administer the advance-payment program.
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.
The Secretary may prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes this section.
The bill would add references to the renter credit and its advance payments in Internal Revenue Code section 6211(b)(4) and title 31 section 1324(b)(2), and add entries to the relevant tables of sections. The surrounding provisions being amended are not reproduced.
Section 6211(b)(4) of such Code is amended— (A) by inserting 36C, after 36B,, and (B) by inserting 7527B), after 7527A,.
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.
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.
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.
The amendments would apply to tax years beginning after December 31, 2026. No renter credit would be allowed for tax years beginning after December 31, 2034.
The amendments made by this section shall apply with respect to taxable years beginning after December 31, 2026.
No credit shall be allowed under subsection (a) for taxable years beginning after December 31, 2034.
Treasury would have to run an outreach program about eligibility for the credit and advance payments. Required activities would include data sharing, systems and forms changes, and efforts to help beneficiaries of other programs enroll, including cooperative agreements with state, local, tribal and territorial governments.
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.
Outreach could involve government partners and private organizations, including organizations that provide free tax-return preparation.
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.
The supplied official-actions snapshot, updated October 2, 2026, records introduction in the House and referral to the House Committee on Ways and Means on September 24, 2026. It does not establish subsequent legislative action or enactment.
Source snapshot updated 2026-10-02T20:05:59Z. 2026-09-24: Referred to the House Committee on Ways and Means. 2026-09-24: Introduced in House
A closer look
Reviewed version: Introduced in House · 2026-09-24. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy rider was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish what appears in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion is limited to that version; the bundle does not establish formal earmark status in accompanying materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow carve-out, special exemption or preferential treatment was identified beyond the program’s ordinary eligibility and benefit rules in the complete supplied introduced text. This conclusion does not extend to other versions or accompanying materials.
Full text preserved for this analysis. Legislative record snapshot: Oct 2, 2026. How PlainBill uses AI