The Los Angeles City Council approved a resolution on Feb. 19 calling on the state to expand the California Renters Tax Credit to all households that spend more than 30% of total income on rent for a primary residence. The resolution authored by Councilman David Ryu, 4th District, also calls for an increase in the credit amount.

“If we want a middle class in Los Angeles, we need to fight for it, and we need policy changes that help working families stay afloat,” Ryu said. “Our state gives massive tax breaks to homeowners but a mere $60 for renters. This is unacceptable. Our policies must match our values, and our tax credit must be made larger and available to more families who rent their home. The majority of Angelenos rent, and it’s time that this tax credit catches up to reality.”

The California Renters Tax Credit currently offers $60 for single renters whose annual income falls below $40,078, and $120 credit for joint filers whose combined income falls below $80,156. Data from 2018 show that 64% of households in Los Angeles rent their residences. The resolution was first introduced by Ryu in June along with Ellis Act enforcement reform to protect tenants and a motion to incentivize moderate-income housing in Los Angeles. Those two motions are pending in the council’s Housing Committee.