At least 2 million renters could see a tax boost next year with this new proposal.
The bill would increase California’s tax credit for low-income renters.
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How would the credit work?
Renters with an annual income below $43,533 currently qualify for a $6o credit. Renters who are married and earn less than $87,066 are eligible for $120. The credit would be boosted under Senate Bill 843. Click here to read more.
The bill could boost the credit to $500 for individuals and $1,000 for married couples or people with dependents. The new proposal also makes the credit refundable. This means renters could take home much more at refund season.
California is the most expensive state for renters, rent averages at $1,901. The tax credit boost would be the first since 1979. Back then, the statewide average rent was $283.
Almost 17 million people in California rent, which is about 44% of the states population.
Many renters in California are cost-burdened, meaning that they spend at least half of their income on rent. If the bill is passed, it would boost the tax credit for the next five years.
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