Renter Tax Credit Expansion Amendment Act of 2025

COUNCIL OF THE DISTRICT OF COLUMBIA
OFFICE OF COUNCILMEMBER BROOKE PINTO
THE JOHN A. WILSON BUILDING
1350 PENNSYLVANIA AVENUE, N.W., SUITE 106
WASHINGTON, D.C. 20004

November 14, 2025
Nyasha Howard, Secretary
Council of the District of Columbia
1350 Pennsylvania Avenue, N.W.
Washington, DC 20004
Dear Secretary Howard,
Today I am introducing the “Renter Tax Credit Expansion Amendment Act of 2025.” This bill
supports District residents’ access to housing by provid ing greater relief for renters who are
severely rent burdened.
For many District residents, stable and affordable rent is the foundation for achieving long -term
financial security. Yet for too many, that foundation is slipping further out of reach. Approximately
44.7% of renters are rent burdened, spending more than 30% of their income on housing costs. 1
The disparities are stark, with more than half of Black renters and nearly half of Hispanic renters
in the District struggling to afford rent compared to just one -third of white renters. 2 Amongst
renters earning less than 30% of the Area Median Income, the number who are rent burdened
climbs to 85%.3 These percentages represent families unable to create additional savings, workers
forced to choose between essential costs, and children growing up in environments of instability
that limit future opportunities.
Renters remain significantly underserved by existing property tax relief programs. Although 59%
of D istrict households are renter -occupied,4 the Homeowner and Renter Property Tax Credit
remains one of the only tax-based housing relief programs directly accessible to renters. 5 Yet, its
current design limits both the amount and timeliness of assistance ava ilable to residents facing
rising housing costs. The value of the current credit is tied to the Consumer Price Index rather than
to measures that better capture the costs of housing in the District, such as Area Median Income
or Small Area Fair Market Rent s. This legislation modernizes the pr operty tax relief framework
by creating a standalone Renter Tax Credit and tying it to a cap equal to the greater of either the
efficiency-level or median efficiency-level Small Area Fair Market Rents . The bill also expands
eligibility to include unhoused individuals or residents in temporary housing who lack fixed rent
payments and allows claimants whose credit exceeds $1,200 to elect for monthly disbursements.

1 D.C. Fiscal Policy Institute, Nearly Half of All Renters and More Than Half of Black Renters in DC Struggle to
Afford Rent, (April 14, 2025), available here.
2 Id.
3 Id.
4 National Low Income Housing Coalition, Out of Reach: District of Columbia, (2025), available here.
5 D.C. Code Title 47, Subchapter VI. Tax on Residents and Nonresidents.

The Renter Tax Credit Expansion Amendment Act will:
• Decouple the homeowner property tax credit from the renter tax credit, creating a separate
Renter Tax Credit;
• Amend the cap for claimants of the Renter Tax Credit tying it to the Efficiency of the Small
Area Fair Market Rent or the median Efficiency of the Small Area Fair Market Rent,
whichever is greater;
• Expand the Renter Tax Credit to provide support to unhoused individuals and individuals
in temporary housing who may lack fixed rents; and
• Allow Renter Tax Credit claimants whose credit exceeds $1,200 to elect for monthly
instead of annual payment.
Renters who spend most of their income on housing face significant challenges saving for
emergencies, investing in education, and building toward homeownership. This bill recognizes
that meaningful access to housing is inseparable from economic stability and prosperity . This
legislation supports housing stability and financial resilience, helping residents build savings and
plan for the future. The Renter Tax Credit Expansion Amendment Act seeks to better uplift renters
so that they may achieve greater stability and build toward a more prosperous future.
Should you have any questions about this legislation, please contact my Legislative Counsel, Isaiah
Boyd, at iboyd@dccouncil.gov.
Sincerely,

Brooke Pinto
Councilmember, Ward 2
Chairwoman, Committee on the Judiciary and Public Safety
Council of the District of Columbia

1

1
2
________________________ 3
Councilmember Brooke Pinto 4
5
6
7
A BILL 8
9
_________________________ 10
11
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 12
13
_________________________ 14
15
16
To amend section 47-1806.06 of the District of Columbia Official Code to separate the property 17
tax credit into a homeowners and renters credit, to authorize monthly disbursement 18
options for eligible claimants, to amend the cap threshold for renters to the greater of 19
either the Efficiency of Small Area Fair Market Rent or median Efficiency of Small Area 20
Fair Market Rents, as published by the U.S. Department of Housing and Urban 21
Development, and to change the eligibility income threshold amount for claimants of the 22
renter tax credit to be 60 percent of the area median income for the District. 23
24
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 25
act may be cited as the “Renter’s Tax Credit Expansion Amendment Act of 2025”. 26
Sec. 2. Section 47-1806.06 of the of the District of Columbia Official Code is amended as 27
follows: 28
(a) Subsection (a)(1) is amended to read as follows: 29
“(1)(A) Homeowners. For purposes of providing relief to certain District of 30
Columbia residents who own their principal place of residence and who reside in the same, an 31
income tax credit shall be allowed to the eligible claimant equal to the amount by which all or a 32
portion of real property taxes the taxpayer pays on his or her principal place of residence for the 33
taxable year exceeds a percentage (as determined under paragraph (2) of this subsection) of his 34

2

or her household gross income for that year. The credit shall not exceed the maximum credit 35
amount. 36
“(1)(B) Renters. District of Columbia residents who rent their principal place of 37
residence, who reside in the same and who are eligible claimants under the provisions of this 38
section, shall be allowed an income tax credit equal to the amount by which rent paid 39
constituting property taxes, deemed for the purposes of this subsection to be 20% of rent, on his 40
or her principal place of residence for the taxable year, exceeds a percentage (as determined 41
under paragraph (2) of this subsection) of his or her household gross income for that year and 42
which exceeds the amount of any rental supplement payments, received by the claimant pursuant 43
to the provisions of title III of the Rental Housing Act of 1977, during that year. The credit shall 44
not exceed the maximum credit amount.”. 45
(b) A new subsection (a-1) is added to read as follows: 46
“(a-1) For taxable years beginning after January 1, 2026: 47
“(1)(A) If the amount of the Renter’s Tax Credit, as established in subsection 48
(a)(1)(B) of this section, allowed is at least $1,200, the individual may elect, in the manner and 49
form prescribed by the Chief Financial Officer, whether the entire amount of the Renter's Tax 50
Credit allowed shall be paid to the individual in either 12 equal monthly payments or one lump 51
sum payment; or 52
“(B) If the amount of the Renter’s Tax Credit allowed is less than $1,200, 53
the entire amount of the Renter’s Tax Credit allowed shall be paid to the individual in one lump 54
sum payment. 55
“(2) No interest shall be allowed on any refund payments made under this 56
subsection. 57

3

“(3) A lump sum payment or a periodic payment made pursuant to this 58
subsection shall not be considered income for the purpose of determining eligibility or benefit 59
amount for public assistance.”. 60
(c) Subsection (b) is amended as follows: 61
(1) Paragraph (4) is amended to read as follows: 62
“(4) The term “claimant” means a person who has filed a claim under this section 63
and who was an owner of record of a home in the District or a lessee, tenant at will, or tenant at 64
sufferance paying rent on a home in the District, during the entire calendar year preceding the 65
year in which the person files a claim for relief under this section; provided that, an otherwise 66
eligible claimant who lacks a fixed address, resides in a temporary or transitional shelter, or pays 67
for a hotel, motel, or other accommodation within the District as a primary place of residence 68
shall be deemed a renter for the purposes of this section. Only one claimant per tax filing unit per 69
year shall be entitled to relief under this section.”. 70
(2) Paragraph (13) is amended by adding a new subparagraph (D) to read as 71
follows: 72
“(D) For the taxable year beginning January 1, 2026, 60 percent area 73
median income, based on the claimant’s household size, as defined in § 42-2801(1)(A) for 74
eligible claimants of the renter tax credit established under subsection (a)(1)(B) of this section.”. 75
(3) Paragraph (14) is amended by adding a new subparagraph (D) to read as 76
follows: 77
“(D) For the taxable year beginning January 1, 2026, the greater of the 78
Efficiency of Small Area Fair Market Rent (“SAFMR”) for the claimant’s ZIP Code, as 79
published by the U.S. Department of Housing and Urban Development, or the median Efficiency 80

4

of SAFMR for the District of Columbia.”. 81
Sec. 3. Fiscal impact statement. 82
The Council adopts the fiscal impact statement in the committee report as the fiscal 83
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 84
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 85
Sec. 4. Effective date. 86
This act shall take effect after approval by the Mayor (or in the event of veto by the 87
Mayor, action by the Council to override the veto), a 30-day period of congressional review as 88
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 89
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 90
Columbia Register. 91