Final answer:
The true statement about the renter's credit is that taxpayers who own a mobile or modular home and pay rent for their space can claim the renter's credit. The correct statement regarding the renter's credit is option C. the renter's credit is based on the amount of rent paid by the taxpayer.
Step-by-step explanation:
The correct statement regarding the renter's credit is: that taxpayers who own a mobile or modular home and pay rent on their space are eligible for the renter's credit. The renter's credit is a non-refundable credit offered to California residents who pay rent for their primary residence. The eligibility for the rental credit does not require the taxpayer to be a resident of California for the entire year, and the credit amount is not based on the amount of rent paid.
The renter's credit is also not fully refundable; it can only reduce the tax you owe to zero. If the credit is more than your tax liability, you will not receive the difference as a refund. This credit is designed to provide some financial relief for low-to-moderate-income individuals and families who rent their homes in California.