Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
This bill targets large investment firms that buy and rent out single-family homes by imposing new tax penalties on their business model. It applies to investors with over $100 million in assets and prevents them from claiming tax deductions for mortgage interest, insurance costs, and depreciation on single-family rental properties, while also imposing an excise tax equal to the full sale price when they sell these homes. The legislation exempts owner-occupied homes, newly constructed properties, and properties owned by government entities and nonprofits, and it prohibits federal mortgage agencies like Fannie Mae, Freddie Mac, and Ginnie Mae from providing financing to these large investors for single-family home purchases. Revenue collected from the excise tax will fund the Housing Trust Fund to support affordable housing for low-income and homeless families. The new rules take effect 18 months after the bill becomes law.
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