The Fair Tax Credit: A Proposal for a Federal Assistance in Rental Credit to Support Low-Income Renters

Authors: Carol Galante, Carolina K. Reid, and Nathaniel Decker

Release Date: November 2016

This paper proposes a new tax credit to assist the growing proportion of renters in the United States facing cost burdens today. The paper introduces the FAIR (Federal Assistance In Rental) Credit and explores three options for structuring and implementing the Credit. The paper also estimates both the budgetary costs and the extent to which each implementation option addresses rental cost burdens.

By putting forward an ambitious proposal to address the needs of low-­‐income renters through the tax code, the Terner Center hopes to spark a serious discussion about how the federal government could and should address the rental affordability crisis.