New renter tax credit puts cash in tenants' pockets—up to $4,000 yearly.
H.R. 10613 — Housing COST Act · Filed by Derek Tran (D-CA) · Introduced Sep 24, 2026 · Referred to committee
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What it does
This bill creates a new federal tax credit for renters, allowing individuals who lease their primary residence to claim a credit of 8.5–11% of rent paid (depending on number of dependents), capped at $4,000 per year and limited to those earning under $150,000. The credit phases in starting in 2027 and expires after 2034, with an optional advance-payment program allowing monthly disbursements beginning in July of each tax year.
Why we flagged it
The bill's sole operative mechanism is a refundable tax credit for rent paid by qualifying tenants. It is a direct income-support measure for renters, not a subsidy to landlords, developers, or financial intermediaries.
What the text implies
- Advance payment program (§7527B) requires IRS to estimate annual credit eligibility and disburse monthly starting July—creates administrative burden and potential reconciliation complexity if circumstances change mid-year (e.g., job loss, income spike, move).
- Credit is capped at 100% of HUD small-area fair-market rent (SAFMR), not actual rent paid—in high-cost markets, renters paying above SAFMR receive no credit on excess, limiting benefit in expensive urban areas.
- Sunset after 2034 creates policy uncertainty; renters may plan around temporary benefit, and renewal will require future legislative action.
- Outreach provision (subsection e) directs Treasury to coordinate with state/local/tribal governments and private tax-prep organizations—may create data-sharing arrangements and cross-enrollment dependencies not fully detailed in bill text.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
Renters—particularly lower-income households with dependents—receive a direct, refundable tax credit reducing their housing costs. The credit is income-capped ($150K AGI threshold), scaled by family size, and includes advance monthly payments, making it accessible to those who need it most. No offsetting costs to citizens are apparent in the text.
Who stands to gain
- Renters (individuals leasing primary residence)
- Lower-income households with dependents
- Tax-preparation service providers (via outreach/enrollment)
Named in the bill
Internal Revenue Service (IRS), Department of Housing and Urban Development (HUD), U.S. Treasury Department, State and local governments, Tribal governments, Tax-preparation organizations
Where it stands
- Sep 24, 2026 — Introduced · Congress.gov: “Introduced in House”
- Sep 24, 2026 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (7,717 characters) on Sep 28, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
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