United States HR 7400: Making Homeownership Affordable Again Act

Bill Text

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119TH CONGRESS
2D SESSION H. R. 7400
To amend the Internal Revenue Code of 1986 to exclude all gain from
the sale of a principal residence or any residence which is sold to
a first-time homebuyer, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 5, 2026
Ms. MACE (for herself and Ms. BOEBERT) introduced the following bill; which
was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to exclude
all gain from the sale of a principal residence or any
residence which is sold to a first-time homebuyer, and
for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Making Homeowner-4
ship Affordable Again Act’’. 5
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SEC. 2. FULL EXCLUSION OF GAIN FROM SALE OF PRIN-1
CIPAL RESIDENCE OR RESIDENCE SOLD TO 2
FIRST-TIME HOMEBUYER. 3
(a) ELIMINATION OF DOLLAR LIMITATIONS ON EX-4
CLUSION OF GAIN.— 5
(1) IN GENERAL.—Section 121(b) of the Inter-6
nal Revenue Code of 1986 is amended— 7
(A) by striking paragraphs (1), (2), and 8
(4), and 9
(B) by redesignating paragraphs (3) and 10
(5) as paragraphs (1) and (2), respectively. 11
(2) CONFORMING AMENDMENTS.— 12
(A) Section 121(c) of such Code is amend-13
ed— 14
(i) in paragraph (1), by striking ‘‘, 15
and subsection (b)(3)’’ and all that follows 16
through ‘‘2 years’’ and inserting ‘‘, and 17
subsection (b)(1), shall not apply’’, and 18
(ii) in paragraph (2)(A)(ii), by strik-19
ing ‘‘subsection (b)(3)’’ and inserting 20
‘‘subsection (b)(1)’’. 21
(B) Section 121(d) of such Code is amend-22
ed— 23
(i) in paragraph (9)(A), by striking 24
‘‘in subsections (a) and (c)(1)(B)’’ and in-25
serting ‘‘in subsection (a)’’, and 26
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(ii) in paragraph (12)(A), by striking 1
‘‘in subsections (a) and (c)(1)(B)’’ and in-2
serting ‘‘in subsection (a)’’. 3
(b) ALLOWANCE OF EXCLUSION OF GAIN FROM 4
SALES TO FIRST-TIME HOMEBUYERS.— 5
(1) IN GENERAL.—Section 121(c)(2)(B) of such 6
Code is amended— 7
(A) by striking ‘‘exchange is by reason of’’ 8
and inserting ‘‘exchange is— 9
‘‘(i) by reason of’’, 10
(B) by striking ‘‘unforeseen cir-11
cumstances.’’ and inserting ‘‘unforeseen cir-12
cumstances, or’’, and 13
(C) by adding at the end the following: 14
‘‘(ii) to a first-time homebuyer.’’. 15
(2) FIRST-TIME HOMEBUYER.—Section 121(c) 16
of such Code, as amended by the preceding provi-17
sions of this Act, is amended by adding at the end 18
the following new paragraph: 19
‘‘(3) FIRST-TIME HOMEBUYER.—For purposes 20
of this subsection, the term ‘first-time homebuyer’ 21
means any individual if such individual (and if mar-22
ried, such individual’s spouse) had no present owner-23
ship interest in a principal residence during the 3- 24
year period ending on the date of the sale or ex-25
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change of the property to which this subsection ap-1
plies.’’. 2
(c) EFFECTIVE DATE.—The amendments made by 3
this section shall apply to sales and exchanges made after 4
the date of the enactment of this Act. 5
Æ
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