Bill · S. 4080· Senate(119-S-4080)
Rental Housing Investment Act
- Introduced
- 3/12/2026
- Last activity
- 3/12/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Lisa Blunt Rochester
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Rental Housing Investment Act amends the Internal Revenue Code of 1986 to create a special depreciation allowance for long-term residential rental property. This bonus depreciation is available for properties placed in service in the United States that have at least two dwelling units and are first used by the taxpayer. The bill provides a specific dollar amount per unit for the deduction, with a higher amount available for affordable housing projects. There are recapture rules if the property stops being used as residential rental housing within a set timeframe.
Yes· 3 of 22
Would business owners be better off under this?+8
Strongly benefits owners of rental housing businesses via bonus depreciation.
Would people with substantial wealth be better off under this?+8
High-value tax breaks specifically target those capable of funding rental property development.
Would the very wealthiest people be better off under this?+8
Provides an efficient way to reduce taxable income through large-scale real estate investment.
The opposite
Does this reduce what the federal government owes?-3
Increases tax expenditures via depreciation allowances, potentially reducing federal revenue.
Does this make the government pay for what it commits to?-2
Creates new tax loopholes that may decrease government revenue.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Incentives for Rental Housing: Section 2(a)(1) provides a depreciation deduction based on the number of dwelling units multiplied by $150,000 (or 100 percent of the adjusted basis, whichever is less), which provides a financial incentive for taxpayers to invest in long-term residential rental properties.
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Increased Support for Affordable Housing: Section 2(a)(5)(A) increases the bonus depreciation amount from $150,000 to $250,000 per unit for properties that are part of projects meeting specific affordable housing requirements.
Potential Negative Impacts for People
-
Recapture Penalties: Section 2(a)(4) imposes recapture rules if a property ceases to be used as long-term residential rental property within a 10-year period, treating the property as disposed of and requiring the taxpayer to recognize amounts under section 1245.
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Extended Penalties for Affordable Housing: Section 2(a)(5)(B) extends the recapture period to 15 years for long-term residential rental properties that meet specific affordable housing requirements, increasing the length of time a taxpayer must maintain the property's status to avoid penalties.
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 Billionaires+8Good For Business Owners+8Good For High Net Worth Individuals+8Good For Ultra High Net Worth Individuals+8Good For High Income Households+7Good For Low Income Households+6Good For Middle Aged+5Good For Middle Class Households+4Good For Urban Residents+4Good For Young Adults+4Good For Rural Residents+3Good For Students+3Good For Union Workers+3
- Economy And Finance
- Improves Small Business Support+7Reduces Small Business Taxes+7Improves Economic Growth+5Increases Job Creation+4Reduces Middle Class Taxes+2Reduces National Debt-3Improves Fiscal Responsibility-2
- Social Issues And Justice
- Improves Affordable Housing+8Reduces Homelessness+5Improves Poverty Reduction+4
- Environment Energy And Infrastructure
- Improves Rural Development+3
- 3/12/2026
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
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.