SHARE Act
Home Ownership: Tax Breaks for Shared Equity Loans
The SHARE Act was recently introduced in the House and is currently being reviewed by the Committee on Ways and Means. This is the first step in the legislative process, and no further actions are scheduled at this time. The bill is considered active as it begins its journey through Congress.
Legislative Progress
The bill has support from both Republicans and Democrats, which is rare. However, many tax bills get stuck in committee unless they are part of a larger package.
Key Points
- This bill, called the SHARE Act, would stop the federal government from taxing the profit lenders make on a specific type of home loan. These loans, called shared appreciation mortgages, allow people to buy a home by giving the lender a share of the home's future value instead of making monthly interest payments.
- It targets middle-income homebuyers who earn up to 140 percent of their local area's median income. To qualify for the tax break, the home must be the buyer's main residence, and the loan must be a second mortgage that is smaller than the primary loan used to buy the house.
- This could make it easier for people to afford homes in expensive areas. By removing the tax on these profits, the bill encourages more companies to offer these no-monthly-payment loans, which help buyers with down payments or lower their overall monthly costs.
- If passed, the new tax rules would apply to any money received from these loans after December 31, 2025. This means it could affect tax filings for the 2026 tax year and beyond.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
SHARE Act
Data Sources
Sponsor
Cosponsors
(2)Analysis generated by AI. Always verify with official sources.