Photo: Karolina Grabowska / Pexels
The proposed Law 843 intends to increase the credit granted to tenants in order to compensate for inflation, an expected benefit of more than 40 years.
This measure seeks to achieve a substantial increase in credit that will benefit a large part of the 45.40% of California Population Living in Rental Homes, according to data from the Census.
“We cannot make an economic recovery without the tenants having the place that corresponds to them. Tenants have waited 42 years for a level modest measure of fairness in our tax code. We cannot make them wait any longer”, expressed during his presentation Senator Steve Glazer, co-author of the Bill 843.
Proud to stand with my colleague Senator @Steve_Glazer in supporting tax relief for renters with SB 843. At a time when our state has had unprecedented resources, it’s important to lift the pressure on those who need it most.
Renters, we see you . pic.twitter.com/T1200Mfqwcr
— Isaac G. Bryan (@ib2_real) January 12, 2022
The bill establishes that would increase the credit of $60 dollars for individual taxpayers to $500 dollars. For single parents and couples, the credit would increase to $1,000 dollars.
Eligible residents includes single state tax filers earning $42, 550 dollars or less, and families filing jointly and earning $87 ,60 dollars or less. Single parents would be eligible for the same credit as couples.
It is estimated that about 2.4 million renters could benefit from the credit, according to the California Franchise Tax Board, which collects personal and corporate income taxes.
Tenants would be eligible if they are California residents and paid rent for at least six months last year.
After his presentation to the Senate, the bill 843 must be assigned to a committee for its first hearing.
The bill has bipartisan support with 43 coauthors.
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