Tran Bill Would Create Refundable Tax Credit of Up to $4,000 a Year for Renters
Rep. Derek Tran (D-CA) has introduced the COST Act, a bill that would set up a tax credit for renters facing rising housing costs. The proposal offers a refundable credit at a base rate of 8% to households with total income of $150,000 or less.
Under the bill, the maximum support would be $333 per month per household, which equals $4,000 per year. Tran’s office said more than 75,000 households in his California district could benefit.
The office noted that Southern California families face some of the highest housing costs in the country. In Orange County, average rent now exceeds $3,200 per month, up nearly 40% since 2017. Tran said the bill would give struggling renters practical and timely help to cover rent, daily expenses or even save toward buying a home.
Tran’s office also pointed to his other housing work. He secured $250,000 in federal funding toward 2,700 long-term affordable homes across Orange County. He also cosponsors the Saving the American Dream Act and the Affordable Housing Credit Improvement Act. He voted for the 21st Century ROAD to Housing Act, which was signed into law in July 2026.
Why it matters
The COST Act is a proposal and has not become law. If enacted, it would give renters direct tax relief rather than relying only on longer-term supply measures.
Source: Rep. Derek Tran (D-CA), October 6, 2026. Read the original release
