The "Rent Relief Act of 2025" proposes to amend the Internal Revenue Code by introducing a new refundable tax credit for individuals who lease their principal residence. This credit aims to provide financial relief to renters whose housing costs are a significant portion of their income. Specifically, it applies to taxpayers whose rent payments exceed 30 percent of their gross income for the taxable year. The amount of the credit is calculated as an "applicable percentage" of the rent paid above the 30 percent threshold, with a maximum limit based on 100 percent of the small area fair market rent . The applicable percentage is tiered, ranging from 100 percent for those with gross incomes not exceeding $25,000, down to 25 percent for incomes between $75,000 and $100,000, and phasing out entirely above $100,000. For residences in designated high-cost areas , these income thresholds are increased by $25,000. The bill also includes special provisions for individuals residing in government-subsidized housing, allowing them to elect an alternative credit equal to one-twelfth of their unsubsidized rent paid. Furthermore, it mandates the Secretary of the Treasury to establish a program for making monthly advance payments of this credit. Eligible taxpayers can elect to receive these advance payments, which will be reconciled with the final credit amount at tax time, ensuring timely financial assistance.