[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7768 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7768

To amend the Internal Revenue Code of 1986 to establish a deduction for 
         certain amounts paid for rent for a primary residence.


_______________________________________________________________________


                    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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Relief for Renters Act of 
2026''.

SEC. 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:

``SEC. 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.
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