To amend the Internal Revenue Code of 1954 to allow certain low- and middle-income individuals a refundable tax credit for a certain portion of the property taxes paid by them on their principal residences or of the rent they pay for their principal residences.

Amends the Internal Revenue Code to allow an individual a refundable income tax credit of up to $500 for property taxes and rent paid on his or her principal residence if the taxes and rent exceed five percent of the taxpayer's adjusted gross income. Reduces the credit available to taxpayers whose adjusted gross income exceeds $20,000.