SACRAMENTO – As part of a bipartisan effort to assist California families who are dealing with an expensive housing market, Senator Ling Ling Chang (R-Diamond Bar) is a co-author of Senate Bill 248 (D-Glazer). The proposed legislation, with 28 co-authors, has strong bipartisan support. For the first time in 40 years, SB 248 would increase California’s renter’s credit and would represent significant help for single parents and could potentially provide 2.4 million California renters with much-needed relief.
“I’m proud to join my colleagues to help hardworking families in California,” said Senator Chang. “California faces an expensive housing market, a homeless epidemic, and housing shortage. This bill is a step in the right direction to offer assistance for hardworking low-income and middle-class renters.”
Currently, eligible renters have their tax liabilities offset by $60 for single filers or $120 for joint filers. Those eligible for the new renter’s credit would be single filers making $41,641 or less and joint filers making $83,282 or less. Eligible households with children would receive a $434 refundable credit; households without children would receive $220.
SB 248 would make the tax credit fully refundable so that renters who have no tax obligation could receive the maximum refund. This bill would index the credit in perpetuity to account for inflation as calculated by the Franchise Tax Board. Under the proposed legislation, the governor could suspend the increase during an economic emergency.
The renter’s credit was established in 1972. Since then, it has only increased once in 1979. Over the past four decades, families have faced an increasing renter’s market where in some counties the median state rent exceeds $1,800 a month for a two-bedroom apartment.