Sponsors (21)
The bill shifts tax benefits away from large/institutional owners and toward HOME rental production and homebuyer grants while strengthening antitrust oversight—boosting funding and protections for lower‑income renters and some buyers but increasing taxes on big owners, adding compliance burdens, and risking reduced private investment and higher rents in some markets.
Low-income and extremely low-income renters: the bill directs the majority of transferred tax-savings into the HOME program (with large shares reserved for new construction and extremely low‑income households), increasing funding for affordable rental production targeted to the lowest-income households.
Homebuyers and local housing markets: stronger antitrust review and new transaction reporting reduce large-scale acquisitions and increase transparency, helping prevent concentration that can drive up rents and home prices.
Qualified homebuyers (including many first-time and first-generation buyers): eligible buyers can receive grants (up to $20,000 or 10% of purchase price) for down payments, closing costs, or interest buydowns, lowering upfront costs and improving affordability for purchase-ready households.
Institutional and large residential owners: the bill disallows or limits key interest and depreciation deductions for large/institutional landlords, raising their after‑tax costs which is likely to reduce maintenance/investment and could slow new supply in some markets.
Renters and prospective tenants: higher tax burdens on large owners and reduced private investment attractiveness are likely to be passed through as higher rents or fewer rental units, worsening affordability for tenants, especially low‑income households.
Private capital and smaller investors: the combination of reduced tax benefits for owners and heightened antitrust reporting/enforcement risks may deter investors (both large and smaller buyers), reducing available private capital for acquisitions and maintenance of housing.
Based on analysis of 6 sections of legislative text.
Limits interest and depreciation deductions for residential properties majority‑owned by large investors, blocks federal sale/financing to those buyers, and directs tax‑savings to HUD HOME and homebuyer grants starting FY2026.
Official title: Amend the Internal Revenue Code of 1986 to deny interest and depreciation deductions for certain taxpayers, and for other purposes.
Introduced February 24, 2026 by Elizabeth Warren · Last progress February 24, 2026
The bill blocks federal tax write-offs (interest and depreciation) for residential real estate owned or controlled by large institutional investors and certain large individual owners, and it stops several federal agencies and government-sponsored enterprises from selling or financing federally backed mortgages or foreclosed homes to those investors. It redirects a share of projected federal tax savings from those limits to HUD programs starting in FY2026 — primarily the HOME program and a new homebuyer assistance fund — and strengthens antitrust reporting and review for residential property acquisitions to limit concentration by large owners. The measure targets large-scale investors in single-family and other residential rentals, tries to steer more properties toward individual homebuyers and nonprofit affordable-housing entities, and creates new tax, housing finance, program funding, and antitrust compliance requirements to discourage institutional accumulation of housing stock.