Renters Tax Credit Act of 2014 - Amends the Internal Revenue Code to allow a business-related tax credit for a portion of the rent paid by a qualified renter.
Defines "qualified renter" as a family unit with income not greater than the higher of 60% of local median income or 150% of the federal poverty line.
Establishes the amount of such credit as the rent reduction amount, which: (1) is the amount by which the fair market rent for a rental unit exceeds the rent charged to the qualified renter; and (2) shall not exceed the excess of the rent charged to the qualified renter (or, if lower, specified modest rent) over 30% of the qualified renter's income (prorated monthly).
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4479 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4479
To amend the Internal Revenue Code of 1986 to provide a renter's
credit.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 10, 2014
Mr. Rangel 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 provide a renter's
credit.
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 ``Renters Tax Credit Act of 2014''.
SEC. 2. RENTERS TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45S. RENTERS CREDIT.
``(a) In General.--For purposes of section 38, in the case of a
qualified credit recipient, the renters credit for any taxable year is
an amount equal to the sum of the renter's credit amounts allocated to
such qualified credit recipient under this section for months ending
during the taxable year.
``(b) Renter's Credit Amount.--
``(1) In general.--For purposes of this section, the term
`renters credit amount' means the rent reduction amount with
respect to each rental unit which is occupied by a qualified
renter.
``(2) Qualified renter.--For purposes of this section, the
term `qualified renter' means a family unit with income not
greater than the higher of--
``(A) 60 percent of local median income, or
``(B) 150 percent of the Federal poverty line,
in each case as determined by the Secretary of Housing and
Urban Development for a family of the size involved.
``(3) Rent reduction amount.--For purposes of this
section--
``(A) In general.--The term `rent reduction amount'
is the amount by which the fair market rent for the
unit involved exceeds the rent charged to the qualified
renter.
``(B) Limitation.--The rent reduction amount taken
into account under this section shall not exceed the
excess of--
``(i) the rent charged to the qualified
renter (or, if lower, specified modest rent),
over
``(ii) 30 percent of the qualified renter's
income (prorated monthly) as determined by the
renters credit agency of the State.
``(C) Specified modest rent.--The term `specified
modest rent' means--
``(i) the Fair Market Rent determined by
the Secretary of Housing and Urban Development
for the zip code (if the unit is located in a
metropolitan area) or non-metropolitan county,
or
``(ii) such amount as may be determined by
the State with respect to the area in which the
unit is located if such amount is within 25
percent of the amount determined under clause
(i) with respect to such unit.
``(D) Utilities.--The renters credit agency of the
State may determine whether and how to take into
account the cost of utilities in determining the rent
reduction amount.
``(E) Credit adjustment.--The renters credit agency
of the State may elect to increase the rent reduction
amount such that such amount does not exceed 110
percent of such amount as determined without regard to
this subparagraph.
``(c) Qualified Credit Recipient.--For purposes of this section,
the term `qualified credit recipient' means, with respect to any rental
unit occupied by a qualified renter, the owner of such unit but only to
the extent of the renters credit amounts which have been allocated to
such person by the renters credit agency. In lieu of the owner of the
unit, the renters credit agency may treat the lender of any loan to
such owner as the qualified credit recipient if such unit secures such
loan.
``(d) Allocations by Renters Credit Agency to Credit Recipients.--
``(1) In general.--The renters credit agency may make
allocations of renters credit amounts to qualified credit
recipients under this section on the basis of--
``(A) the identity of the qualified renter, such
that the renters credit amount is allowed to the owner
of any rental unit which such qualified renter occupies
(or the lender referred to in subsection (c)) for any
month, or
``(B) one or more rental units, such that the
renters credit amount is allowed to the owner of such
units (or the lender referred to in subsection (c)) for
such months as such units are occupied by a qualified
renter.
``(2) Restrictions on unit based allocations.--A renters
credit agency may make allocations of renters credit as
described in paragraph (1)(B) only if--
``(A) such units are part of a project or building
in which not more than 40 percent of the units receive
allocations under this section (the Secretary may
provide such exceptions to the requirement of this
subparagraph as the Secretary determines appropriate
for small buildings or buildings with respect to which
more than 40 percent of the units were previously
subsidized under other Federal programs), and
``(B) the Secretary has approved a mobility plan
submitted by such renters credit agency which provides
for an adequate method to ensure that qualified renters
have the ability to move from a unit which is eligible
for credit under this section without losing the rent
subsidy provided by this section.
``(e) Allocations of Credit Authority to State Agencies.--
``(1) Renters credit dollar amount for agencies.--
``(A) State limitation.--The aggregate credit
amounts which a renters credit agency may allocate for
any calendar year is the portion of the State renters
credit ceiling allocated under this paragraph for such
calendar year to such agency.
``(B) State ceiling initially allocated to state
housing credit agencies.--Except as provided in
subparagraphs (D) and (E), the State renters credit
ceiling for each calendar year shall be allocated to
the renters credit agency of such State. If there is
more than 1 renters credit agency of a State, all such
agencies shall be treated as a single agency.
``(C) State renters credit ceiling.--The State
renters credit ceiling applicable to any State and any
calendar year shall be an amount equal to the sum of--
``(i) the unused State renters credit
ceiling (if any) of such State for the
preceding calendar year,
``(ii) the greater of--
``(I) $17.50 multiplied by the
State population, or
``(II) $20,000,000,
``(iii) the amount of State renters credit
ceiling returned in the calendar year, plus
``(iv) the amount (if any) allocated under
subparagraph (D) to such State by the
Secretary.
For purposes of clause (i), the unused State renters
credit ceiling for any calendar year is the excess (if
any) of the sum of the amounts described in clauses
(ii) through (iv) over the aggregate renters credit
dollar amount allocated for such year.
``(D) Unused renters credit carryovers allocated
among certain states.--
``(i) In general.--The unused renters
credit carryover of a State for any calendar
year shall be assigned to the Secretary for
allocation among qualified States for the
succeeding calendar year.
``(ii) Unused renters credit carryover.--
For purposes of this subparagraph, the unused
renters credit carryover of a State for any
calendar year is the excess (if any) of--
``(I) the unused State renters
credit ceiling for the year preceding
such year, over
``(II) the aggregate renters credit
dollar amount allocated for such year.
``(iii) Formula for allocation of unused
housing credit carryovers among qualified
states.--The amount allocated under this
subparagraph to a qualified State for any
calendar year shall be the amount determined by
the Secretary to bear the same ratio to the
aggregate unused renters credit carryovers of
all States for the preceding calendar year as
such State's population for the calendar year
bears to the population of all qualified States
for the calendar year. For purposes of the
preceding sentence, population shall be
determined in accordance with section 146(j).
``(iv) Qualified state.--For purposes of
this subparagraph, the term `qualified State'
means, with respect to a calendar year, any
State--
``(I) which allocated its entire
State renters credit ceiling for the
preceding calendar year, and
``(II) for which a request is made
(not later than May 1 of the calendar
year) to receive an allocation under
clause (iii).
``(E) Application of certain rules.--For purposes
of this paragraph, rules similar to the rules of
subparagraphs (E), (F), and (G) of section 42(h)(3)
shall apply.
``(F) Inflation adjustment.--
``(i) In general.--In the case of a
calendar year after 2013, the $20,000,000 and
$17.50 amounts in subparagraph (C) shall each
be increased by an amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for such calendar year by
substituting `calendar year 2001' for
`calendar year 1992' in subparagraph
(B) thereof.
``(ii) Rounding.--
``(I) In the case of the
$20,000,000 amount, any increase under
clause (i) which is not a multiple of
$50,000 shall be rounded to the next
lowest multiple of $50,000.
``(II) In the case of the $17.50
amount, any increase under clause (i)
which is not a multiple of 50 cents
shall be rounded to the next lowest
multiple of 50 cents.
``(f) Other Definitions.--For purposes of this section--
``(1) Renters credit agency.--The term `renters credit
agency' means, with respect to any State, the housing credit
agency of such State (as defined in section 42(h)(8)(A)) or
such other agency as is authorized to carry out the activities
of the renters credit agency under this section.
``(2) Possessions treated as states.--The term `State'
includes a possession of the United States.
``(g) Regulations.--The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
section.''.
(b) Credit To Be Part of General Business Credit.--
(1) In general.--Subsection (b) of section 38 of such Code
is amended by striking ``plus'' at the end of paragraph (35),
by striking the period at the end of paragraph (36) and
inserting ``, plus'', and by adding at the end the following
new paragraph:
``(37) the renters credit determined under section
45S(a).''.
(2) Credit allowable against alternative minimum tax.--
Subparagraph (B) of section 38(c)(4) of such Code is amended by
redesignating clauses (vii) through (ix) as clauses (viii)
through (x), respectively, and by inserting after clause (vi)
the following new clause:
``(vii) the credit determined under section
45S,''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45S. Renters credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to allocations made for calendar years after 2014 and to taxable
years ending after December 31, 2014.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line