Sec. 41103. Refundable credit for rent costs of eligible individuals

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Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36 the following new section: In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the excess of— the lesser of— the mean fair market rental amount with respect to the individual, or the rent paid during the taxable year by the individual (and, if married, the individual's spouse) for the principal residence of the individual, over an amount equal to 30 percent of the adjusted gross income of the taxpayer for the taxable year.

For purposes of this section— The term eligible individual means any individual if the rent paid during the taxable year by the individual (and, if married, the individual's spouse) for the principal residence of the individual exceeds 30 percent of the adjusted gross income of the taxpayer for the taxable year. Such term shall not include any individual if— the individual does not include on the return of tax for the taxable year such individual's taxpayer identification number and, if married, the taxpayer identification number of such individual's spouse, or a deduction under section 151 with respect to such individual is allowable to another taxpayer for the taxable year.

Such term shall include an individual who is married only if a joint return is filed for the taxable year. The term principal residence has the same meaning as when used in section 121. Marital status shall be determined under section 7703. For purposes of this section, with respect to an individual, the mean fair market rental amount for a taxable year is the fair market rent (including the utility allowance) published by the Department of Housing and Urban Development for purposes of the Housing Choice Voucher Program, under the rule published in the Federal Register on November 16, 2016 (81 Fed. Reg. 80567), for the same area and a comparable rental unit as the individual's principal residence.

For purposes of this section, rent paid 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). . 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 36 the following new item: Sec. 36A. Rent costs of eligible individuals. . Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by inserting , 36A after 36 .

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this subtitle. Not later than 2 years after the date of the enactment of this subtitle, the Secretary of the Treasury shall submit to Congress a report on the credit allowed under section 36A of the Internal Revenue Code of 1986 (as added by subsection (a)), including on whether taxpayers are fraudulently claiming such credit.

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81 FR 80567

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Sec. 41103

Refundable credit for rent costs of eligible individuals

Fed. Reg.81 FR 80567

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