Federal Tax, Tax

Renters Tax Credits Proposed by the American Bar Association

A recent American Bar Association (ABA) conference discussed a potential tenant-based renters’ tax credit (RTC), which could be claimed on federal income tax returns if it was enacted into law. It was suggested that an RTC could be refundable, similar to the Child Tax Credit, to benefit low-income individuals. Another proposal was to make an RTC available to landlords as an incentive to negotiate rent-reduction agreements with tenants. The goal of both RTC models would be to reduce poverty and homelessness. Currently, there are some proposals in Washington to provide rent relief but they don’t have bipartisan support so it’s unclear whether an RTC could become a reality. Contact us with questions about this complex process. © 2024