The Renter Tax Credit Expansion Amendment Act of 2025 aims to enhance housing affordability for District residents by providing increased financial relief to renters who are severely rent burdened. The bill introduces a separate Renter Tax Credit, decoupling it from the homeowner property tax credit, and ties the credit cap to the greater of either the efficiency-level or median efficiency-level Small Area Fair Market Rents. Additionally, it expands eligibility to include unhoused individuals or those in temporary housing without fixed rent payments. Claimants whose credit exceeds $1,200 will have the option to receive their credit in monthly disbursements rather than a lump sum.

Key amendments to the existing law include the establishment of a new subsection that allows eligible renters to choose between monthly payments or a lump sum for their tax credit, and a revision of the income threshold for eligibility to 60% of the area median income. The bill also clarifies the definition of a claimant to include individuals without fixed addresses who reside in temporary accommodations. These changes are designed to provide more timely and relevant assistance to renters, ultimately supporting their financial stability and housing security.