Rent deduction for primary residence

(a) In general Part VI of subchapter B of chapter 1 of subtitle A is further amended by redesignating section 228 as section 229 and inserting after section 227 the following new section: 228. Rent (a) In general In the case of an individual, there shall be allowed as a deduction for the taxable year an amount equal to the qualifying rent payments of such individual for the taxable year. (b) Qualifying rent payments For purposes of this section, the term qualifying rent payments means amounts paid by the individual in rent for such individual’s principal residence (as such term is used in section 121). (c) Income phaseout (1) In general The amount of the deduction determined under subsection (a) shall be reduced (but not below zero) by an amount equal to 1 percent for every $500 ($1,000 in the case of a joint return) or fraction thereof by which such individual’s modified adjusted gross income exceeds the applicable threshold. (2) Applicable threshold For purposes of this subsection, the term applicable threshold means— (A) $150,000 in the case of a joint return, or (B) $75,000 in the case of any other individual. (3) Modified adjusted gross income For purposes of this section, the term modified adjusted gross income means adjusted gross income increased by an amount excluded from gross income under sections 911, 931, and 933.. (b) Deduction allowed to non-Itemizers Section 63(b) is further amended by striking and at the end of paragraph (8), by striking the period at the end of paragraph (9) and inserting, and, and by adding at the end the following new paragraph: (10) the deduction provided in section 228.. (c) Clerical amendment The table of sections for part VI of subchapter B of chapter 1 of subtitle A is further amended by striking the item relating to section 228 (as added by section 8) and inserting the following new items: Sec. 228.Rent. Sec. 229. Cross reference.. (d) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2026.