State’s Tax Credit For Renters May Increase After More Than 40 Years

January 13, 2022 17:29 pm · 13 comments

California’s tax credit for renters may increase to account for inflation after more than 40 years, according to state Sen. Steve Glazer’s office.

Glazer, D-Contra Costa, and co-authors this week introduced Senate Bill 843, which would increase the credit from $60 for single filers to $500. For single parents and couples, the credit will be $1,000 if the bill passes.

Renters are eligible if they are single and earn $43,533 or less or if they file jointly and earn $87,066 or less. Single parents would be eligible for the same credit as couples.

“We’ve treated renters like the doormat outside California’s economic recovery house,” Glazer said in a statement. “We cannot make an economic comeback without renters having their rightful place inside. Renters have waited 42 years for a modest level of fairness in our tax code. We can’t make them wait any longer.”

The bill has widespread bipartisan support with 43 co-authors. The credit has not been increased since 1979.

Almost 2.4 million renters could benefit from the credit, according to an estimate by the state’s Franchise Tax Board, which collects personal and corporate income taxes.

The renter’s tax credit was established in 1972 and has increased just once, in 1979. Since then, median rent in the state has more than quintupled, according to Glazer’s office.

Taxpayers will receive the full credit if it exceeds their total tax liability, according to Glazer’s office.

{ 13 comments… read them below or add one }

Tsa January 13, 2022 at 6:01 PM

Those of us who pay income taxes are also treated like doormats so try reducing the exorbitant income tax rates. Those of us who have had enough of the financial ineptitude of the politicians are leaving. Tax and spend is not a viable fiscal policy!!!

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Torcofuel January 13, 2022 at 6:23 PM

Well you just got to ask why do renters deserve any tax credit at all? That’s one of the more stupid tax credits that’s been on the books for as long as I can remember and now they want to raise it to $500 that’s total BS.
Maybe I’m biased because I’ve never been a renter in my lifetime.

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WC Resident January 13, 2022 at 11:24 PM

@Torcofuel – I have always assumed the intent of the renters tax credit was not the credit to the renter but catching landlords who are either not reporting or under reporting their rental income.

Torcofuel January 13, 2022 at 11:47 PM

@Goat
Nope bought my first place in college and at that time my parents no longer paid my college costs.
I went back and reread one of the comments from the original post and it said some people have been waiting 42 years to get this larger tax break, and I think that’s just pathetically sad that people have been paying rent for 42 years of their lives and have nothing to show for it That’s just a huge lesson in stupidity.

I love your humorous comment as well as everybody else’s in all the other posts they are always welcome but generally show a person’s stupidity when they make a comment like you just did. Congrats you just put a notch where you hang on the totem pole kemosabe.

Schmee January 14, 2022 at 4:16 AM

Hard to live in this area making less then $43k a year…

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Cyn January 14, 2022 at 9:35 AM

@Schmee
Not with Gavin around.

Chicken Little January 14, 2022 at 6:28 AM

I wonder if they’ll still be eligible for the credit if they haven’t been paying rent rent because, you know, COVID.

Don’t worry, though, I’m sure they’ll come up with some way to increase taxes on landlords to pay for it.

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Nope! January 14, 2022 at 7:11 AM

Yeah, I finally sold my rental property (massive cap gains tax paid) because of property tax increases, inflation, and not being able to raise the rent to fair market value so while the renter got a great house on the cheap, I was losing more and more money every month. Final outcome? Another renter looking for a place to live.

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Fred January 14, 2022 at 8:14 AM

Everyone should be taxed the same. I’ve paid off my mortgage and get no tax benefit from it. No capital gains, no credits. You want to help those less advantaged then just raise the standard deduction.

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WC---Creeker January 14, 2022 at 8:27 AM

Doesn’t seem like renters will gain much in those low incomes. But understand the politicians wanting to make good sound bites to gain future votes. “I worked extremely hard for working families in my district to get them the rental relief they deserve!” said any politician trying to get votes.

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Bruh January 14, 2022 at 9:57 AM

Ah yes, the tax credits.

I love when people that aren’t accountants, tax professionals, financial planners, or economists have any input on monetary or tax policy.

According to politicians we should always listen to the experts, as they have throughout the covid response by following fauci and the cdc.

By that logic since politicians are not experts on anything they have no place to propose legislation.

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Cellophane January 14, 2022 at 11:09 AM

This proposal is nothing more than another giveaway program.

The government is giving your tax dollars to people who rent.

The real reasons for this are for politicians to get supportive votes.

The rest of the reasons are lies.

All politicians lie all the time.

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Old-school guy January 14, 2022 at 11:48 AM

I never understood the logic behind renter’s credit. Is it an incentive to rent?; is it an acknowledgement that many people rent something more than they can afford and the govt is offering a subsidy???? Good thing the current state budget proposal has billions in reserves.

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