Bill · H.R. 4352· House(119-HR-4352)
HOMES Act
- Introduced
- 7/10/2025
- Last activity
- 7/10/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Emilia Sykes
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
This bill, known as the "HOMES Act," seeks to amend the Internal Revenue Code of 1986. It aims to deny interest and depreciation deductions to "disqualified single family property owners." A disqualified owner is defined as a taxpayer who owns 50 or more single family residential rental properties, whether owned directly or indirectly. The bill provides specific exceptions for when these properties are sold to individuals for use as a primary residence or to qualified nonprofit organizations. These changes would apply to indebtedness incurred and property placed in service after the Act is enacted.
Yes· 3 of 5
Does this make housing cost less?+7
The bill incentivizes the sale of properties to nonprofits and individuals, potentially increasing affordable housing supply.
Would households on low incomes be better off under this?+5
The bill supports affordable housing which benefits low-income households.
Would middle-income households be better off under this?+5
The bill facilitates sales to individuals for use as primary residences.
The opposite· 3 of 5
Would high-income households be better off under this?-5
Large property owners face significant loss of tax deductions.
Would business owners be better off under this?-5
Large-scale rental property owners will face higher effective tax costs.
Would people with substantial wealth be better off under this?-5
The bill targets large-scale property ownership often held by high-net-worth individuals.
Who it would affect, and how
Potential Positive Impacts for People
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Sale to Individuals: The bill allows for interest and depreciation deductions to be applicable in the year a property is sold to an individual for use as their principal residence. This is found in Section 2(a)(2)(A) and Section 3(a)(2)(A).
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Support for Affordable Housing: The bill provides exceptions for sales to "qualified nonprofit organizations" which include entities like community development corporations, land banks, and community land trusts that work toward the creation, development, or preservation of affordable housing. This is found in Section 2(a)(2)(C).
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Preservation of Affordability: The definition of a community land trust includes organizations that use ground leases or deed covenants to make rental and homeownership units affordable for at least 30 years. This is found in Section 2(a)(2)(C)(iv).
Potential Negative Impacts for People
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Loss of Deductions for Large Owners: Taxpayers who own 50 or more single family residential rental properties will be denied deductions for interest paid or accrued in connection with those properties. This is found in Section 2(a)(1).
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Loss of Depreciation Deductions: Disqualified owners will be denied any deduction for depreciation related to their single family residential rental property. This is found in Section 3(a)(1).
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Restrictions on Capitalized Amounts: The bill prevents certain interest from being treated as a deduction or being charged to a capital account for disqualified owners. This is found in Section 2(b)(1) and Section 2(b)(2).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+5Good For Middle Class Households+5Good For Billionaires-5Good For Business Owners-5Good For High Income Households-5Good For High Net Worth Individuals-5Good For Ultra High Net Worth Individuals-5
- Social Issues And Justice
- Improves Affordable Housing+7
- Economy And Finance
- Increases Wealthy Taxes+5
- Governance And Ideology
- Increases Federal Power+5
- 7/10/2025
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Summer LeeDemocrat · Pennsylvania