A newly proposed tax credit could bring relief to cost-burdened renters if they meet certain requirements.
The proposal, put out by the Terner Center for Housing Innovation, is called the Federal Assistance in Rental Credit, and would be a national tax credit. It could provide relief for up to 15.1 million families, according to the foundation.
The FAIR tax credit is a policy proposal that seeks to give renters the same kind of tax credit that homeowners receive. The tax credit proposal suggests three potential structure:
A rental affordability option which all renters could receive if they meet certain requirements such as earning less than 80% of the local median income and paying more than 30% of their income in rent
A rent reduction option which targets the same population but provides more calibrated relief, depending on the severity of the family’s financial situation.
A composite option which combines the reduction option and provides additional relief for very low-income families.
The foundation estimates that the cost for this proposal would range from $41 to $76 billion depending on the structure.
“As we look ahead to a new administration and transitions in political leadership across the country, we have the opportunity to elevate the importance of housing stability for children, workers, and the U.S. economy, and promote more meaningful action,” the foundation stated.
Part of Democratic presidential candidate Hillary Clinton and her running mate Tim Kaine recently announced a plan that includes low income housing tax credits for homeowners and an increased rental assistance plan if she becomes president.
As of Nov. 3, Republican presidential candidate Donald Trump’s economic plan doesn’t say anything about housing, low-income or otherwise.
The foundation will be hosting a forum with HousingWire on Nov. 18 in Dallas on Housing America’s Families. For more information on the event, or to register, click here.