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. The legislation also allows claimants whose credit exceeds $1,200 to opt for monthly disbursements instead of a lump sum payment.

Key amendments to the existing law include the establishment of a new subsection that permits monthly payments for eligible claimants, and adjustments to the income threshold for eligibility, which is set at 60% of the area median income. The bill also clarifies the definition of a claimant to include individuals without a fixed address who reside in temporary accommodations. These changes are designed to better support renters facing financial challenges, ultimately promoting housing stability and economic resilience within the District.