CAA supports fresh attempt to boost renter’s tax credit
The California Apartment Association has offered its support for a bill that would raise the state’s renter’s tax credit for the first time in decades.
“Housing costs are going through the roof in California, and families are struggling to pay the rent,” said state Sen. Steve Glazer, D-Contra Costa.
Glazer unveiled the bill Wednesday with two principal coauthors — Assemblywomen Lorena Gonzalez, D-San Diego, and Sharon Quirk-Silva, D-Orange County, as well as 28 coauthors.
The legislation, SB 248, would increase California’s renter’s credit for the first time in 40 years and would represent significant help to single parents in particular.
Gonzalez added, “While California homeowners receive more than $4 billion in tax relief through mortgage deductions, renters’ relief has been barely a blip on the radar. This can serve as one tool to make renting more affordable and provide relief for working families.”
Those eligible for the new renter’s credit would be single filers making $41,641 or less and joint filers making $83,282 or less. Eligible households with children would receive a $434 refundable credit; households without children would receive $220. Currently, eligible renters have their tax liabilities offset by $60 for single filers or $120 for joint filers.
“It is no secret that our state is facing a homelessness epidemic and a housing shortage,” Quirk-Silva said. “Hard-working families are ending up on our streets because they cannot afford to pay the exorbitant cost of rent in our state. Students in Orange County, in particular, are commuting more than an hour, because their rent is too high. We must do more, and this bill is the solution.”
CAA has supported previous bills that sought to boost the renter’s tax credit, which has not been increased since 1979. The proposed increase accounts for inflation since then.