(a) Each taxable year, an individual who rents a dwelling for use as the individual's principal place of residence may deduct from the individual's adjusted gross income (as defined in IC 6-3-1-3.5 (a)), the lesser of:

1. (1) the amount of rent paid by the individual with respect to the dwelling during the taxable year; or
2. (2) three thousand dollars ($3,000).

(b) Notwithstanding subsection (a):

1. (1) a married couple filing a joint return for a particular taxable year may not claim a deduction under this section of more than three thousand dollars ($3,000); and
2. (2) a married individual filing a separate return for a particular taxable year may not claim a deduction under this section of more than one thousand five hundred dollars ($1,500).

(d) For purposes of this section, a "dwelling" includes a single family dwelling and unit of a multi-family dwelling.

As added by Acts 1979, P.L.70, SEC.1. Amended by P.L.14-1999, SEC.1; P.L.192-2002(ss), SEC.77; P.L.146-2008, SEC.318; P.L.146-2020, SEC.23.