Bill · S. 3904· Senate(119-S-3904)
American Homeownership Act
- Introduced
- 2/24/2026
- Last activity
- 2/24/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Elizabeth Warren
- Cosponsors
- - 19 - 0
- Introduced
- In Committee
What this bill would do
The American Homeownership Act aims to amend the Internal Revenue Code of 1986 to deny interest and depreciation deductions for certain large real property owners and institutional investment entities. It targets deductions for residential rental property and single-family residential property held by these entities. The bill also prohibits covered federal entities from selling residential properties or providing certain mortgage loans to these specific large owners or institutional investors. Furthermore, it establishes new investments for housing supply and homeownership using savings generated from these tax changes. Finally, it increases antitrust monitoring for residential property acquisitions.
Yes· 3 of 11
Does this make housing cost less?+8
The bill significantly increases funding for affordable housing through the HOME program and provides grants for down payments.
Would households on low incomes be better off under this?+7
The bill provides direct financial assistance and increased affordable housing through targeted grants and programs.
Is this likely to lift people out of poverty?+5
By increasing affordable housing supply and providing homeownership assistance, the bill helps reduce housing-related poverty.
The opposite
Does this raise the taxes companies pay?-5
The bill denies interest and depreciation deductions for large institutional property owners, effectively increasing their tax burden.
Does this raise taxes on the highest earners?-4
The bill targets large real property owners and institutional investment entities by disallowing key tax deductions.
Would business owners be better off under this?-3
Large property owners and institutional investors face significant new tax liabilities and regulatory scrutiny.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Exceptions for Individual Homeowners and Nonprofits: Interest deductions are preserved when residential property is sold to an individual for use as a principal residence or to a qualified nonprofit organization (Section 2).
-
Support for New Housing Construction: Exceptions allow for interest deductions on new single-family residential property and multi-family residential property (5 or more units) constructed after December 31, 2023 (Section 2).
-
Preservation of Uninhabitable Housing: Deductions remain available for interest used for the primary purpose of substantially rehabilitating property that is not fit for human occupancy or fails building codes (Section 2).
-
Affordable Housing Protections: Interest deductions are still allowed for Federally assisted housing and certain buildings that have received housing credits (Section 2).
-
Increased Funding for Affordable Housing: Savings from disallowed deductions are used to fund the HOME Investment Partnerships program for acquiring, rehabilitating, and constructing affordable housing (Section 5).
-
Financial Assistance for Homebuyers: A portion of the tax savings is allocated to a fund providing grants for down payments, closing costs, and interest rate buydowns for qualified homebuyers (Section 5).
-
Targeted Help for Specific Groups: Assistance is directed toward qualified homebuyers, including first-time homebuyers and first-generation homebuyers (Section 5).
Potential Negative Impacts for People
-
Loss of Deductions for Large Property Owners: Institutional investment entities and large owners of single-family residential property will no longer be able to claim interest and depreciation deductions (Section 2 and Section 3).
-
Restrictions on Federal Financing and Sales: Covered entities, such as the Department of Veterans Affairs and the Federal Housing Administration, are prohibited from selling certain residential properties or issuing specific mortgage loans to large owners or institutional investment entities (Section 4).
-
Increased Antitrust Scrutiny for Acquisitions: Acquisitions of residential property that increase a person's market share to more than 30 percent will now be presumed to violate antitrust laws (Section 6).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Social Issues And Justice
- Improves Affordable Housing+8Improves Poverty Reduction+5Improves Racial Equity+4Reduces Homelessness+3
- Demographic And Interest Groups
- Good For Low Income Households+7Good For Middle Class Households+5Good For African Americans+4Good For Urban Residents+4Good For Veterans+2Good For Business Owners-3
- Economy And Finance
- Improves Consumer Protection+3Increases Corporate Taxes-5Increases Wealthy Taxes-4
- Governance And Ideology
- Increases Federal Power+4
- 2/26/2026
- 2 Cosponsors added.
- 2/24/2026
- Read twice and referred to the Committee on Finance.
- 18 Cosponsors added.
- Introduced in Senate
Richard BlumenthalDemocrat · Connecticut
Cory BookerDemocrat · New Jersey
Christopher CoonsDemocrat · Delaware
Richard DurbinDemocrat · Illinois
Tammy DuckworthDemocrat · Illinois
John HickenlooperDemocrat · Colorado
Mazie HironoDemocrat · Hawaii
Martin HeinrichDemocrat · New Mexico
Amy KlobucharDemocrat · Minnesota
Timothy KaineDemocrat · Virginia
Andy KimDemocrat · New Jersey
Edward MarkeyDemocrat · Massachusetts
Christopher MurphyDemocrat · Connecticut
Jeff MerkleyDemocrat · Oregon
Bernie SandersIndependent · Vermont
Adam SchiffDemocrat · California
Brian SchatzDemocrat · Hawaii
Tina SmithDemocrat · Minnesota
Chris Van HollenDemocrat · Maryland
Peter WelchDemocrat · Vermont