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H.R. 10613House119th Congress (2025-2027)In Committee

Housing COST Act

To amend the Internal Revenue Code of 1986 to allow for a credit against tax for rent paid on the personal residence of the taxpayer.

Also known as Housing Cost of Living Support for Tenants Act of 2026

Sponsored by Derek TranRep. Derek Tran (D-CA)
Introduced September 24, 2026

AI-Generated Summary

Updated September 28, 2026 at 12:53 PM UTC

The Housing Cost of Living Support for Tenants Act creates a refundable tax credit for people who rent their main home. The credit is a percentage of the rent paid, limited to $4,000 per year, and is only available to taxpayers with adjusted gross incomes of $150,000 or less. It also sets up a program that can pay the credit to eligible renters in monthly installments during the year. The credit applies to tax years beginning after 2026 and ends after 2034.

Key Provisions

  • Adds a new renter tax credit (Section 36C) that lets a renter claim a credit equal to an “applicable percentage” of rent paid, up to a $4,000 annual limit.
  • The credit is capped at the amount of rent that does not exceed 100 % of the HUD‑published small‑area fair‑market rent for the residence.
  • Taxpayers with adjusted gross income over $150,000 in the prior year are ineligible.
  • The applicable percentage rises with the number of dependents (8.5% for 1 dependent up to 11% for six or more).
  • Rent includes certain utility payments; special rules cover partial‑year residence and married individuals filing separately (each gets half the joint credit unless they agree otherwise).
  • The credit is refundable but reduced by any advance payments made under Section 7527B; excess advances increase the taxpayer’s liability.
  • Section 7527B creates a program to provide monthly advance payments of the estimated credit, payable after the taxpayer elects to receive them on the prior year’s return, covering July‑June of the tax year.
  • Conforming amendments update code references to include the new sections.
  • Effective for tax years beginning after Dec 31 2026; the credit expires after Dec 31 2034.
  • The Treasury must conduct outreach to inform eligible renters about the credit and the advance‑payment option.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

September 24, 2026

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HouseIntro Referral

Introduced in House

September 24, 2026

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

September 24, 2026

Bill Text

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Introduced in HouseIssued September 24, 2026

I

119th CONGRESS

2d Session

H. R. 10613

IN THE HOUSE OF REPRESENTATIVES

September 24, 2026

Mr. Tran 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 allow for a credit against tax for rent paid on the personal residence of the taxpayer.

1.

Short title

This Act may be cited as the Housing Cost of Living Support for Tenants Act of 2026 or the Housing COST Act.

2.

Refundable credit for rent paid for principal residence

(a)

In general

Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36B the following new section:

36C.

Renter tax credit

(a)

In general

In the case of an individual who leases the individual’s principal residence (within the meaning of section 121) during the taxable year, 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 the rent paid by such individual with respect to the lease of such residence.

(b)

Limitations

(1)

Dollar limit

The credit allowed under subsection (a) for any taxable year shall not exceed $4,000.

(2)

Credit limited by small area fair market rent

Solely for purposes of determining the amount of the credit allowed under subsection (a) with respect to a residence for the taxable year, there shall not be taken into account rent in excess of an amount equal to 100 percent of the small area fair market rent applicable to the residence involved (as most recently published, as of the beginning of the taxable year, by the Department of Housing and Urban Development).

(3)

Adjusted gross income limitation

No credit shall be allowed under this section with respect to a taxpayer for a taxable year if the taxpayer’s adjusted gross income exceeds $150,000 for the preceding taxable year.

(c)

Definitions and special rules

For purposes of this section—

(1)

Applicable percentage

The term applicable percentage means the percentage determined in accordance with the following table:

The applicable
If the taxpayer has the following number of dependents:percentage is:
1 dependent8.5 percent
2 dependents9 percent
3 dependents9.5 percent
4 dependents10 percent
5 dependents10.5 percent
6 or more dependents11 percent
(2)

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 year.

(3)

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 42(g)(2)(B)(ii).

(4)

Married individuals filing separate returns

In the case of individuals who are married to each other, have the same principal residence, and do not file a joint return for the taxable year, the credit determined under this section with respect to each such individual shall be 50 percent of the amount of the credit which would be determined under this section if such individuals filed a joint return, unless such individuals agree on a different division of such credit (in such manner as the Secretary may provide) which does not aggregate to more 100 percent of such amount.

(5)

Dependents

An individual who is a dependent (as defined in section 152) of the taxpayer for the taxable year shall be treated as a dependent for purposes of this section.

(d)

Reconciliation of credit and advance payments

(1)

In general

The amount of the credit allowed under this section for any taxable year shall be reduced (but not below zero) by the aggregate amount of any advance payments of such credit under section 7527B for such taxable year.

(2)

Excess advance payments

If the aggregate amount of advance payments under section 7527B for the taxable year exceeds the amount of the credit allowed under this section for such taxable year, determined without regard to paragraph (1), the tax imposed by this chapter for such taxable year shall be increased by the amount of such excess.

(e)

Termination

No credit shall be allowed under subsection (a) for taxable years beginning after December 31, 2034.

.

(b)

Advance payment

Chapter 77 of the Internal Revenue Code of 1986 is amended by inserting after section 7527A the following new section:

7527B.

Advance payment of renter tax credit

(a)

In general

Not later than 6 months after the date of the enactment of the Housing Cost of Living Support for Tenants Act of 2026, the Secretary shall establish a program for making advance payments of the credit allowed under section 36C on a monthly basis to any taxpayer who—

(1)

the Secretary has determined will be allowed such credit for the taxable year, and

(2)

has made an election under subsection (c).

(b)

Amount of advance payment

(1)

In general

For purposes of subsection (a), 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—

(A)

an amount equal to—

(i)

the amount of the credit which the Secretary has determined will be allowed to such taxpayer under section 36C for the taxable year ending in such applicable period, divided by

(ii)

12, or

(B)

such other amount as is elected by the taxpayer.

(2)

Applicable period

For purposes of this section, the term applicable period means the 12-month period from the month of July of the taxable year through the month of June of the subsequent taxable year.

(c)

Election of advance payment

A taxpayer may elect to receive an advance payment of the credit allowed under section 36C for any taxable year by including such election on a timely filed return for the preceding taxable year.

(d)

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 36C are aware of the availability of the advance payment of such credit under this section.

(e)

Regulations

The Secretary may prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes this section.

.

(c)

Conforming amendments

(1)

Section 6211(b)(4) of such Code is amended—

(A)

by inserting 36C, after 36B,, and

(B)

by inserting 7527B), after 7527A,.

(2)

Section 1324(b)(2) of title 31, United States Code, is amended—

(A)

by inserting 36C, after 36B,, and

(B)

by striking or 7527A and inserting 7527A, or 7527B.

(3)

The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item:

Sec. 36C. Renter tax credit.

.

(4)

The table of sections for chapter 77 of such Code is amended by inserting after the item relating to section 7527A the following new item:

Sec. 7527B. Advance payment of renter tax credit.

.

(d)

Effective date

The amendments made by this section shall apply with respect to taxable years beginning after December 31, 2026.

(e)

Community outreach

The Secretary of the Treasury (or the Secretary’s designee) shall carry out an outreach program to ensure taxpayers are aware of eligibility for the renter tax credit allowed under section 36C of the Internal Revenue Code of 1986 (including the advance payment of such credit under section 7527B of such Code). Such program shall include program outreach, data sharing arrangements, systems changes, forms changes, and related efforts, and efforts by Federal agencies to facilitate the cross-enrollment of beneficiaries of other programs in such credit, including by establishing intergovernmental cooperative agreements with States and local governments, tribal governments, and possessions of the United States. Such outreach may be achieved through Federal agencies to State and local governments, tribal governments, and possessions of the United States, and private entities, including organizations dedicated to free tax return preparation.