Senator Steve Glazer announced Tuesday that the California State Senate passed a renters tax credit bill aimed to assist 2.4 million low income renters.
Senate Bill 248 passed in a 37-0 vote which aims to change the tax credit which had not changed for nearly 40 years.
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.
Glazer said in a Februayr statement:
“Housing costs are going through the roof in California and families are struggling to pay the rent,” Glazer said. “Forty years have passed since the last time the renter’s credit was increased, so it’s about time we provide this needed financial relief to renters.”
SB 248 would make the tax credit fully refundable so that renters who have no tax obligation could receive the maximum refund. This bill would index the credit in perpetuity to account for inflation as calculated by the Franchise Tax Board. Under the legislation, the Governor could suspend the increase during an economic emergency.
According to Glazer’s office, the renter’s credit was established in 1972. Since its only increase in 1979, rents in California have nearly tripled. Median state rent exceeds $1,800 a month for a two-bedroom apartment, and rentals in cities like San Francisco average more than $3,000 a month.
The bill was introduced by Glazer in February with Assembly members Lorena Gonzalez (D-San Diego), Sharon Quirk-Silva (D-Orange County) and 28 co-authors.
In 2017-18, the Legislature passed a package aimed at increasing the state’s housing supply, including putting a bond measure on the ballot and another to make it easier for developers to build affordable housing.
