(1) Deduction allowed

Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by redesignating section 226 as section 227 and by inserting after section 225 the following new section:

226. Rent payments

(a) In general

There shall be allowed as a deduction an amount equal to 1/12 the qualified rent expenses of the taxpayer for the taxable year.

(b) Qualified rent expenses

For purposes of this section, the term qualified rent expenses means, with respect to a taxable year, amounts paid or incurred to lease the primary residence of the taxpayer during the taxable year.

(c) Limitations

(1) In general

The deduction allowed under subsection (a) shall not exceed $4,000 for any individual in any taxable year.

(2) Income limitation

(A) In general

No deduction shall be allowed under subsection (a) in the case of an individual whose adjusted gross income for the taxable year exceeds the threshold amount.

(B) Threshold amount

For purposes of this paragraph, the term threshold amount means—

(i)

in the case of a joint return or a surviving spouse, $125,000,

(ii)

in the case of married filing separately, $85,000,

(iii)

in the case of a head of household, $80,000, or

(iv)

in the case of any other individual, $75,000.

(d) Inflation adjustment

(1) In general

In the case of any taxable year beginning after 2027, each of the dollar amounts in subsection (c) shall be increased by an amount equal to—

(A)

such dollar amount, multiplied by

(B)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2026 for calendar year 2016 in subparagraph (A)(ii) thereof.

(2) Rounding

If any increase under paragraph (1) is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100.

(2) Conforming amendment

The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 225 the following new item:

(1) Deduction not treated as a miscellaneous itemized deduction

Section 67(b) of such Code is amended by striking and at the end of paragraph (12), by striking the period at the end of paragraph (13) and inserting , and, and by adding at the end the following new paragraph:

(14)

the deduction under section 226 (relating to rent payments).