American Homeownership Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 3904 Introduced in Senate (IS)] <DOC> 119th CONGRESS 2d Session S. 3904 To amend the Internal Revenue Code of 1986 to deny interest and depreciation deductions for certain taxpayers, and for other purposes. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES February 24, 2026 Ms. Warren (for herself, Mr. Merkley, Ms. Klobuchar, Ms. Smith, Mr. Blumenthal, Ms. Duckworth, Mr. Durbin, Mr. Heinrich, Ms. Hirono, Mr. Kaine, Mr. Kim, Mr. Markey, Mr. Murphy, Mr. Schatz, Mr. Sanders, Mr. Schiff, Mr. Van Hollen, Mr. Welch, and Mr. Booker) introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to deny interest and depreciation deductions for certain taxpayers, 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 ``American Homeownership Act''. SEC. 2. DISALLOWANCE OF DEDUCTION FOR INTEREST PAID ON REAL PROPERTY OWNED BY CERTAIN REAL PROPERTY OWNERS. (a) In General.--Section 163 of the Internal Revenue Code of 1986 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection: ``(n) Interest Paid on Residential Rental Property Owned by Certain Real Property Owners.-- ``(1) In general.--No deduction shall be allowed under this chapter for any interest paid or accrued in connection with-- ``(A) any applicable residential property in which an institutional investment entity (directly or indirectly) holds a majority interest, or ``(B) single-family residential property in which a large owner (directly or indirectly) holds a majority interest. ``(2) Exception for sales to individuals or qua