(a) (1) For a qualified renter, there shall be allowed a credit against the renterâs ânet tax,â as defined in Section 17039. The amount of the credit shall be as follows: (A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, if adjusted gross income is fifty thousand dollars ($50,000) or less, the credit shall be equal to: (i) For taxable years beginning before January 1, 2026, one hundred twenty dollars ($120). (ii) Except as otherwise provided in subdivision (k), for taxable years beginning on or after January 1, 2026: (I) Two hundred fifty dollars ($250) if the qualified renter has no dependents, as defined in Section 17056. (II) Five hundred dollars ($500) if the qualified renter has one or more dependents, as defined in Section 17056. (B) For other individuals, if adjusted gross income is twenty-five thousand dollars ($25,000) or less, the credit shall be equal to: (i) For taxable years beginning before January 1, 2026, sixty dollars ($60). (ii) Except as otherwise provided in subdivision (k), for taxable years beginning on or after January 1, 2026: (I) Two hundred fifty dollars ($250) if the qualified renter has no dependents, as defined in Section 17056. (II) Five hundred dollars ($500) if the qualified renter has one or more dependents, as defined in Section 17056. (2) Except as provided in subdivision (b), spouses shall receive only one credit under this section. If the spouses file separate returns, the credit may be taken by either or equally divided between them, except as follows: (A) If one spouse was a resident for the entire taxable year and the other spouse was a nonresident for part or all of the taxable year, the resident spouse shall be allowed one-half the credit allowed to married persons and the nonresident spouse shall be permitted one-half the credit allowed to married persons, prorated as provided in subdivision (e). (B) If both spouses were nonresidents for part of the taxable year, the credit allowed to married persons shall be divided equally between them subject to the proration provided in subdivision (e). (b) For spouses, if each spouse maintained a separate place of residence and resided in this state during the entire taxable year, each spouse will be allowed one-half the full credit allowed to married persons provided in subdivision (a). (c) For purposes of this section, a âqualified renterâ means an individual who satisfies both of the following: (1) Was a resident of this state, as defined in Section 17014. (2) Rented and occupied premises in this state that constituted the individualâs principal place of residence during at least 50 percent of the taxable year. (d) âQualified renterâ does not include any of the following: (1) An individual who for more than 50 percent of the taxable year rented and occupied premises that were exempt from property taxes, except that an individual, otherwise qualified, is deemed a qualified renter if the individual or the individualâs landlord pays possessory interest taxes, or the owner of those premises makes payments in lieu of property taxes that are substantially equivalent to property taxes paid on properties of comparable market value. (2) An individual whose principal place of residence for more than 50 percent of the taxable year is with another person who claimed that individual as a dependent for income tax purposes. (3) An individual who has been granted or whose spouse has been granted the homeownersâ property tax exemption during the taxable year. This paragraph does not apply to an individual whose spouse has been granted the homeownersâ property tax exemption if each spouse maintained a separate residence for the entire taxable year. (e) An otherwise qualified renter who is a nonresident for any portion of the taxable year shall claim the credits set forth in subdivision (a) at the rate of one-twelfth of those credits for each full month that individual resided with
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