Sponsors (7)
This is not an official government website.
Copyright © 2026 PLEJ LC. All rights reserved.
Creates a new federal excise tax on certain owners who hold excess single-family homes and removes common federal tax benefits for those owners. Specifically, it adds a new chapter to Subtitle D of the Internal Revenue Code that taxes specified taxpayers who fail to sell excess single-family residences, and it denies mortgage interest and depreciation tax deductions for any single-family residence owned by a taxpayer who is liable for that new excise tax. The changes apply to taxable years beginning after the date of enactment.
The bill seeks to push surplus single-family homes into the market and curb deduction-based tax sheltering, potentially increasing housing supply and tax fairness, but it also raises taxes on affected homeowners, creates new liability and administrative burdens, and risks disputes over who is liable.
Renters and local housing markets: the excise may encourage owners to sell excess single-family homes, increasing local housing supply and helping ease shortages.
Homeowners who sell excess single-family residences: owners who divest vacant or surplus homes may face fewer market distortions as the bill creates incentives to put such homes on the market.
Taxpayers subject to chapter 50B: those individuals will lose mortgage interest and depreciation deductions on single-family homes, reducing targeted tax benefits for that group.
Homeowners (including middle-class families) subject to chapter 50B: will face higher taxable income and larger tax bills because mortgage interest and depreciation on single-family residences are disallowed.
Homeowners and ordinary taxpayers: could incur a new excise tax liability if deemed to 'fail to sell' vacant or surplus homes, which could function as a punitive penalty and discourage long-term ownership.
Taxpayers, tax preparers, and the IRS: the bill creates additional complexity and administrative/compliance costs to determine who is liable under chapter 50B and the excise rules.
Introduced February 27, 2025 by Jeff Merkley · Last progress February 27, 2025