H.R. 7768

119 HR 7768 IH: Tax Relief for Renters Act of 2026
 U.S. House of Representatives
 2026-03-03
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 I  119th CONGRESS  2d Session  H. R. 7768  IN THE HOUSE OF REPRESENTATIVES   March 3, 2026   Mr. Landsman  (for himself and  Mr. Kean ) 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 establish a deduction for certain amounts paid for rent for a primary residence.
1.
Short title
This Act may be cited as the   Tax Relief for Renters Act of 2026  .
2.
Deduction for rent payments
(a)
In general
(1)
Deduction allowed
Part VII of subchapter B of  chapter 1  of the Internal Revenue Code of 1986 is amended by redesignating section 226 as section 227 and by inserting after section 225 the following new section:
226.
Rent payments
(a)
In general
There shall be allowed as a deduction an amount equal to  1/12  the qualified rent expenses of the taxpayer for the taxable year.
(b)
Qualified rent expenses
For purposes of this section, the term  qualified rent expenses  means, with respect to a taxable year, amounts paid or incurred to lease the primary residence of the taxpayer during the taxable year.
(c)
Limitations
(1)
In general
The deduction allowed under subsection (a) shall not exceed $4,000 for any individual in any taxable year.
(2)
Income limitation
(A)
In general
No deduction shall be allowed under subsection (a) in the case of an individual whose adjusted gross income for the taxable year exceeds the threshold amount.
(B)
Threshold amount
For purposes of this paragraph, the term  threshold amount  means—
(i)
in the case of a joint return or a surviving spouse, $125,000,
(ii)
in the case of married filing separately, $85,000,
(iii)
in the case of a head of household, $80,000, or
(iv)
in the case of any other individual, $75,000.
(d)
Inflation adjustment
(1)
In general
In the case of any taxable year beginning after 2027, each of the dollar amounts in subsection (c) shall be increased by an amount equal to—
(A)
such dollar amount, multiplied by
(B)
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting  calendar year 2026  for  calendar year 2016  in subparagraph (A)(ii) thereof.
(2)
Rounding
If any increase under paragraph (1) is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100.
 .
(2)
Conforming amendment
The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 225 the following new item:
Sec. 226. Rent payments.
  .
(b)
Deduction allowed to non-Itemizers
Section 63(b) of such Code is amended by striking  and  at the end of paragraph (6), by striking the period at the end of paragraph (7) and inserting  and , and by adding at the end the following new paragraph:
(8)
the deduction provided in section 226.
 .
(c)
Non-Application of certain limitations for itemizers
(1)
Deduction not treated as a miscellaneous itemized deduction
Section 67(b) of such Code is amended by striking  and  at the end of paragraph (12), by striking the period at the end of paragraph (13) and inserting  , and , and by adding at the end the following new paragraph:
(14)
the deduction under section 226 (relating to rent payments).
 .
(d)
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2026.