To amend the Internal Revenue Code of 1986 to establish a deduction for certain amounts paid for rent for a primary residence.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The Tax Relief for Renters Act of 2024 creates a new tax deduction for rent payments on a primary residence. Renters can deduct one month of their annual rent (one-twelfth of total rent paid), up to a maximum of $4,000 per person per year. The deduction is available even to taxpayers who take the standard deduction rather than itemizing.
Who Benefits and How
Low- and moderate-income renters benefit most, as the deduction is limited to individuals earning under $100,000 (under $125,000 for heads of household, under $150,000 for joint filers). Unlike the mortgage interest deduction available to homeowners, renters currently have no comparable federal tax benefit, and this bill addresses that gap. The deduction is available to both itemizers and non-itemizers.
Who Bears the Burden and How
Federal tax revenue decreases as the government forgoes income tax on the deducted rent amounts. Higher-income renters earning above the income thresholds receive no benefit. Homeowners receive no additional benefit from this bill.
Key Provisions
- New Section 224 of the Internal Revenue Code allowing deduction of 1/12 of annual rent payments
- Maximum deduction of $4,000 per individual per year
- Income limits: $100,000 for single filers, $125,000 for heads of household, $150,000 for joint filers
- Available to both standard deduction and itemizing taxpayers
- Effective for tax years beginning after December 31, 2024
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Creates a new federal tax deduction allowing renters to deduct up to $4,000 per year of rent payments on their primary residence, available to individuals earning under $100,000 (or $150,000 for joint filers).
Key Policy Areas
Taxation, Housing
Primary Purpose
Creates a new federal tax deduction allowing renters to deduct up to $4,000 per year of rent payments on their primary residence, available to individuals earning under $100,000 (or $150,000 for joint filers).
Policy Domains
Whole Bill
Identified Gains
- Low- and Moderate-Income Renters
- Non-Itemizing Taxpayers
Identified Costs
- Federal Tax Revenue (U.S. Treasury)
Sponsors
Legislative Progress
IntroducedMr. Landsman introduced the following bill; which was referred to …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Low and moderate income renters, Renters with incomes below threshold amounts
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
Key Definitions
Terms defined in this bill
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