,,ii  #aafth ,,congress  #ast ,session  
,s4 #aajf  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,april #aj1    
#bjai,ms4 ,harris 7for herself1 ,mr4    
,blumenthal1 and ,ms4 ,hassan7          
introduced the following bill2 which was
 read twice and referred to the         
,committee on ,finance  ,a ,,bill  ,to  
amend the ,internal ,revenue ,code of   
#aihf to allow for a credit against tax 
for rent paid on the personal residence 
of the taxpayer4  #a4 ,short title ,this
 ,act may be cited as the ,rent ,relief 
,act of #bjai4  #b4 ,refundable credit  
for rent paid for principal residence   
7a7 ,in general ,subpart ,c of part ,,iv
 of subchapter ,a of chapter #a of the  
,internal ,revenue ,code of #aihf is    
amended by inserting after section      
#cf;,b the following new section3       
#cf;,c4 ,rent paid for principal        
residence  7a7 ,in general ,in the case 
of an individual who leases the         
individual's principal residence 7within
 the meaning of section #aba7 during the

 taxable year and who pays rent with    
respect to such residence in excess of  
#cj percent of the taxpayer's gross     
income for such taxable year1 there     
shall be allowed as a credit against the
 tax imposed by this subtitle for such  
taxable year an amount equal to the     
applicable percentage of such excess4   
7b7 ,credit limited by #ajj percent of  
small area fair market rent ,solely for 
purposes of determining the amount of   
the credit allowed under subsection 7a7 
with respect to a residence for the     
taxable year1 there shall not be taken  
into account rent in excess of an amount
 equal to #ajj percent of the small area
 fair market rent 7including the utility
 allowance7 applicable to the residence 
involved 7as most recently published1 as
 of the beginning of the taxable year1  
by the ,department of ,housing and      
,urban ,development74  7c7 ,definitions 
and special rules ,for purposes of this 
section-- 7#a7 ,applicable percentage   
7,a7 ,in general ,except as provided in 

subparagraph 7,b71 the applicable       
percentage shall be determined in       
accordance with the following table3    
,the applicable,if gross income         
is3percentage is3,not over #be1jjjajj   
percent,over #be1jjj1 but not over      
#ej1jjjge percent,over #ej1jjj1 but not 
over #ge1jjjej percent,over #ge1jjj1 but
 not over #ajj1jjjbe percent,over       
#ajj1jjjj percent4  7,b7 ,high-cost     
areas ,in the case of an individual     
whose principal residence is located in 
an area for which1 under the rule       
published in the ,federal ,register on  
,november #af1 #bjaf 7#ha ,fed4 ,reg4   
#hjefg71 the small area fair market rent
 is used for purposes of the ,housing   
,choice ,voucher ,program1 each of the  
dollar amounts in the table contained in
 subparagraph 7,a7 shall be increased by
 #be1jjj4  7#b7 ,partial year residence 
,the ,secretary shall prescribe such    
rules as are necessary to carry out the 
purposes of this section for taxpayers  
with respect to whom a residence is a   

principal residence for only a portion  
of the taxable year4  7#c7 ,special rule
 for individuals residing in            
government-subsidized housing ,in the   
case of a principal residence-- 7,a7 the
 rent with respect to which is          
subsidized under a ,federal1 ,state1    
local1 or tribal program1 and  7,b7 with
 respect to which the taxpayer elects   
the application of this paragraph1  in  
lieu of the credit determined under     
subsection 7a71 there shall be allowed  
as a credit against the tax imposed by  
this subtitle for such taxable year an  
amount equal to #a_/ab of the amount of 
rent paid by the taxpayer 7and not      
subsidized under any such program7      
during the taxable year with respect to 
such residence4  7#d7 ,rent ,the term   
rent includes any amount paid for       
utilities of a type taken into account  
for purposes of determining the utility 
allowance under section                 
#db7;g77#b77;,b77ii74  7d7              
,reconciliation of credit and advance   

payments ,the amount of the credit      
allowed under this section for any      
taxable year shall be reduced 7but not  
below zero7 by the aggregate amount of  
any advance payments of such credit     
under section #gebg;,a for such taxable 
year4  4  7b7 ,advance payment  ,chapter
 #gg of the ,internal ,revenue ,code of 
#aihf is amended by inserting after     
section #gebg the following new section3
  #gebg;,a4 ,advance payment of middle  
class tax credit  7a7 ,in general ,not  
later than #f months after the date of  
the enactment of the ,rent ,relief ,act 
of #bjai1 the ,secretary shall establish
 a program for making advance payments  
of the credit allowed under section     
#cf;,c on a monthly basis to any        
taxpayer who--  7#a7 the ,secretary has 
determined will be allowed such credit  
for the taxable year1 and  7#b7 has made
 an election under subsection 7c74  7b7 
,amount of advance payment  7#a7 ,in    
general ,for purposes of subsection 7a71
 the amount of the monthly advance      

payment of the credit provided to a     
taxpayer during the applicable period   
shall be equal to the lesser of--  7,a7 
an amount equal to-- 7i7 the amount of  
the credit which the ,secretary has     
determined will be allowed to such      
taxpayer under section #cf;,c for the   
taxable year ending in such applicable  
period1 divided by  7ii7 #ab1 or  7,b7  
such other amount as is elected by the  
taxpayer4  7#b7 ,applicable period ,for 
purposes of this section1 the term      
applicable period means the #ab-month   
period from the month of ,july of the   
taxable year through the month of ,june 
of the subsequent taxable year4  7c7    
,election of advance payment ,a taxpayer
 may elect to receive an advance payment
 of the credit allowed under section    
#cf;,c for any taxable year by including
 such election on a timely filed return 
for the preceding taxable year4  7d7    
,internal ,revenue ,service notification
 ,the ,internal ,revenue ,service shall 
take such steps as may be appropriate to

 ensure that taxpayers who are eligible 
to receive the credit under section     
#cf;,c are aware of the availability of 
the advance payment of such credit under
 this section4  7e7 ,authority ,the     
,secretary may prescribe such           
regulations or other guidance as may be 
appropriate or necessary for the        
purposes of carrying out this section4  
4  7c7 ,clerical amendments  7#a7 ,in   
general ,the table of sections for      
subpart ,c of part ,,iv of subchapter ,a
 of chapter #a of the ,internal ,revenue
 ,code of #aihf is amended by inserting 
after the item relating to section      
#cf;,b the following new item3  ,sec4   
#cf;,c4 ,rent paid for principal        
residence4  4  7#b7 ,advance payment    
,the table of sections for chapter #gg  
of such ,code is amended by inserting   
after the item relating to section #gebg
 the following new item3  ,sec4         
#gebg;,a4 ,advance payment of middle    
class tax credit4  4  7d7 ,effective    
date ,the amendments made by this       

section shall apply with respect to     
taxable years beginning after ,december 
#ca1 #bjah4