Section 1. Short title
This Act may be cited as the Tax Relief for Renters Act of 2024.
(1) Deduction allowed
Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section:
(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 payments
For purposes of this section, the term qualified rent payments means, with respect to a taxable year, amounts paid or incurred to lease the primary residence of the taxpayer during the taxable year.
(1) In general
The deduction allowed under subsection (a) shall not exceed $4,000 for any individual in any taxable year.
(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, $150,000,
(ii) in the case of a head of household, $125,000, or
(iii) in the case of any other individual, $100,000.
(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 223 the following new item:
(b) Deduction allowed to non-Itemizers
Section 63(b) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting and, and by adding at the end the following new paragraph:
(5) the deduction provided in section 224.
(1) Deduction not treated as a miscellaneous itemized deduction
Section 67(b) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting, and, and by adding at the end the following new paragraph:
(13) the deduction under section 224 (relating to rent payments).
(2) Deduction not taken into account under overall limitation
Section 68(c) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting, and, and by adding at the end the following new paragraph:
(4) the deduction under section 224 (relating to rent payments).
(d) Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2024.