Making Homeownership Affordable Again Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7400 Introduced in House (IH)]

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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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Making Homeownership Affordable 
Again Act''.

SEC. 2. FULL EXCLUSION OF GAIN FROM SALE OF PRINCIPAL RESIDENCE OR 
              RESIDENCE SOLD TO FIRST-TIME HOMEBUYER.

    (a) Elimination of Dollar Limitations on Exclusion of Gain.--
            (1) In general.--Section 121(b) of the Internal Revenue 
        Code of 1986 is amended--
                    (A) by striking paragraphs (1), (2), and (4), and
                    (B) by redesignating paragraphs (3) and (5) as 
                paragraphs (1) and (2), respectively.
            (2) Conforming amendments.--
                    (A) Section 121(c) of such Code is amended--
                            (i) in paragraph (1), by striking ``, and 
                        subsection (b)(3)'' and all that follows 
                        through ``2 years'' and inserting ``, and 
                        subsection (b)(1), shall not apply'', and
                            (ii) in paragraph (2)(A)(ii), by striking 
                        ``subsection (b)(3)'' and inserting 
                        ``subsection (b)(1)''.
                    (B) Section 121(d) of such Code is amended--
                            (i) in paragraph (9)(A), by striking ``in 
                        subsections (a) and (c)(1)(B)'' and inserting 
                        ``in subsection (a)'', and
                            (ii) in paragraph (12)(A), by striking ``in 
                        subsections (a) and (c)(1)(B)'' and inserting 
                        ``in subsection (a)''.
    (b) Allowance of Exclusion of Gain From Sales to First-Time 
Homebuyers.--
            (1) In general.--Section 121(c)(2)(B) of such Code is 
        amended--
                    (A) by striking ``exchange is by reason of'' and 
                inserting ``exchange is--
                            ``(i) by reason of'',
                    (B) by striking ``unforeseen circumstances.'' and 
                inserting ``unforeseen circumstances, or'', and
                    (C) by adding at the end the following:
                            ``(ii) to a first-time homebuyer.''.
            (2) First-time homebuyer.--Section 121(c) of such Code, as 
        amended by the preceding provisions of this Act, is amended by 
        adding at the end the following new paragraph:
            ``(3) First-time homebuyer.--For purposes of this 
        subsection, the term `first-time homebuyer' means any 
        individual if such individual (and if married, such 
        individual's spouse) had no present ownership interest in a 
        principal residence during the 3-year period ending on the date 
        of the sale or exchange of the property to which this 
        subsection applies.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to sales and exchanges made after the date of the enactment of 
this Act.
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