WeVote
Log In

Bill

Bill

HF 435

A bill for an act creating a deduction available against the individual income tax for gross rent paid by a taxpayer, and including applicability provisions.

2025-2026 Regular Session Introduced by Josh Turek

Bill HF 435 allows renters to deduct gross rent from their taxable income, aiming to ease financial burdens and make housing more affordable starting in 2026.

Introduced, referred to Ways and Means.
#incometaxes #landlordandtenant #rentalproperty
0
WeVote Research Nonpartisan
Bill Summary · HF 435

Summary of Bill HF 435

Bill Information

  • Bill Number: HF 435
  • Title: A bill for an act creating a deduction available against the individual income tax for gross rent paid by a taxpayer, and including applicability provisions.
  • Status: Introduced, referred to Ways and Means.
  • Introduced Date: February 17, 2025
  • Classification: Bill
  • Subject Areas: Income Taxes, Landlord and Tenant, Rental Property

Purpose and Intent

The primary purpose of Bill HF 435 is to provide a tax deduction for individuals who pay rent for their primary residence. This deduction aims to alleviate the financial burden on renters by allowing them to subtract the gross rent they pay from their taxable income, thereby potentially lowering their overall tax liability.

Key Provisions

  • New Tax Deduction:

    • The bill amends Section 422.7 of the Code 2025 to include a new subsection that allows taxpayers to deduct the gross rent paid for their homestead or manufactured/mobile home.
    • The deduction applies specifically to rent paid at arm's length, meaning it must be a fair market transaction between the tenant and landlord.
    • The deduction also covers rent for land occupied by a manufactured or mobile home, with a limit of one acre.

  • Definition of Homestead:

    • The term "homestead" is defined in the bill as a dwelling rented and used as the taxpayer's primary home, which may include part of a multi-dwelling unit.

Applicability

  • The provisions of this bill will apply to tax years beginning on or after January 1, 2026. This means that eligible taxpayers will be able to claim this deduction when filing their income taxes for the 2026 tax year and beyond.

Impact

  • Who Will Be Affected:

    • This bill primarily affects individual taxpayers who rent their homes, including those living in manufactured or mobile homes. It aims to provide financial relief to renters by reducing their taxable income.

  • Potential Benefits:

    • By allowing a deduction for gross rent, the bill seeks to make housing more affordable for renters, potentially increasing disposable income for those who qualify.

Legislative Actions

  • February 17, 2025: The bill was introduced and referred to the Ways and Means Committee for further consideration.

This summary provides an overview of Bill HF 435, highlighting its intent, key provisions, and the potential impact on taxpayers in the state.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.