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SB24-146

Tax Credit for Qualified Renters

Concerning the creation of an income tax credit to provide temporary tax relief for income-qualified renters of a primary residence in the state.
Session:
2024 Regular Session
Subject:
Fiscal Policy & Taxes
Bill Summary

For the 2024 income tax year through the 2026 income tax year, the bill creates a nonrefundable income tax credit (credit), which cannot be carried forward, for a taxpayer who:

  • Rents the taxpayer's primary residence in the state; and
  • Has a federal adjusted gross income (AGI) that is less than or equal to $75,000 if filing a single return, or less than or equal to $150,000 if filing a joint return (qualifying taxpayer).

The amount of the credit is:

  • $2,000 for 2 qualifying taxpayers filing a joint return with a federal AGI that is $50,000 or less. For every $500 of AGI above $50,000, the amount of the credit is reduced by $10.
  • $1,000 for a qualifying taxpayer filing a single return with a federal AGI that is $25,000 or less. For every $500 of AGI above $25,000, the amount of the credit is reduced by $10.

Notwithstanding the income-based reductions in the allowable credit amount, a qualifying taxpayer who also qualifies for a rent or heat assistance grant during calendar year 2024, 2025, or 2026, as applicable, is eligible to receive the full credit amount. In addition, the bill specifies that, to the extent permitted by federal law, the credit is not income or resources for the purpose of determining eligibility for the payment of public assistance benefits and medical assistance benefits authorized under state law or for a payment made under any other publicly funded programs.

The bill specifies that a qualifying taxpayer who is eligible to claim any other income tax credit that is allowed to a taxpayer who rents the taxpayer's primary residence and has a federal AGI that is less than or equal to $75,000 if filing a single return, or less than or equal to $150,000 if filing a joint return, may claim the income tax credit allowed in the bill or the other income tax credit allowed for income-qualified renters, but not both.


(Note: This summary applies to this bill as introduced.)

Status

Introduced
Under Consideration

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Bill Text

Sponsors

Sponsor Type Legislators
Prime Sponsor

Sen. C. Hansen, Sen. C. Kolker
Rep. L. García

Sponsor

Co-sponsor

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