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Hundreds of residents urge refundable renters' tax credit as direct relief for cost-burdened households
Summary
Dozens of renters, tenant advocates and community groups testified in favor of HB5114, a fully refundable renters' tax credit modeled on other states' programs that supporters say would return money to struggling households and help prevent evictions and housing instability.
A steady stream of renters, tenant organizers, municipal leaders and advocates told the Finance, Revenue and Bonding Committee that Connecticut urgently needs a refundable renters' tax credit to relieve rising housing costs and prevent displacement.
Witnesses argued the proposed credit (modeled in testimony on other states' programs) would deliver fast, targeted relief. "A renters' tax credit will give me relief and will help me have extra money to catch up on my bills or pay the next month right away," testified one renter who said she had moved several times to find affordable housing (SEG 7502-7556). Policy advocates described draft calculations (20% of rent minus 4% of income, with eligibility thresholds and a $2,500 cap) and emphasized a refundable structure so low-income renters without tax liabilities receive the full benefit (SEG 2355-2363).
Supporters also emphasized the policy's administrative options: filing through the normal tax process for those who already file, plus a one-page DRS form for lower-income households who do not file taxes, to increase uptake. Economists and advocates told lawmakers the best evidence shows modest renter-side relief does not systematically raise rents and that the largest driver of rent increases remains supply shortages, not benefit design.
Opponents were fewer in number at this hearing but some lawmakers and stakeholders raised concerns about potential landlord pass-through effects and urged program design measures to limit direct landlord visibility of recipients and consider provisions that reduce leakage (e.g., refundable, direct-to-renter payments and privacy protections). Many lawmakers asked about outreach, uptake strategies and modeling of fiscal costs and distributional effects.
What happens next: Committee staff will receive written cost estimates and models for HB5114; sponsors and advocates asked the committee to adopt a refundable credit with outreach plans for low-income renters.
