SHARE Act

Bill Number: H.R. 8116
Origin Chamber: House
Congress: 119th Congress, Session 2
Policy Area: Taxation
Status: Introduced
Latest Action: 2026-03-26: Referred to the House Committee on Ways and Means.
Last Updated: 2026-06-24T08:07:50Z

AI-Generated Summary

## Purpose This legislation, known as the Shared Home Appreciation for Residential Equity Act (SHARE Act), amends the Internal Revenue Code of 1986 to exclude certain payments from taxable income. The goal is to reduce tax burdens on lenders offering shared appreciation mortgages, which are designed to help borrowers purchase homes without requiring regular payments beyond a share of future property value increases.

## Key Provisions

Tax Exclusion for Lenders: Lenders do not include in taxable income any repayment amounts that exceed the original loan principal under qualifying shared appreciation mortgages, provided the borrower’s income is at or below 140 percent of the local area median income and the property serves as the borrower’s main home.
Additional Exclusion: Gains from selling or disposing of these qualifying mortgages are also excluded from taxable income.
Definition of Shared Appreciation Mortgage: These are second-lien loans on one- to four-family homes that:
Allow the lender to receive a set percentage of the home’s net value increase (capped at the loan amount divided by the purchase price).
Require no other payments from the borrower.
Limit the loan to no more than 49 percent of the purchase price.
Rank behind a first mortgage that meets federal qualified mortgage standards.
Cannot be repaid until the first mortgage matures, the home is sold, the first mortgage is paid off, or certain default events occur.
Effective Date: The changes apply to amounts received after December 31, 2025.

## Significant Changes to Existing Law The bill adds a new section (139J) to the Internal Revenue Code, creating a targeted tax exclusion that did not previously exist for these specific mortgage repayment structures. It modifies how certain mortgage-related income is treated for tax purposes without altering other parts of the tax code.

## Potential Impacts

Government Agencies: The Internal Revenue Service would administer the new exclusion, potentially requiring updated tax forms, guidance, and compliance checks, which could affect federal tax collections.
Citizens: Lenders may find these loans more attractive, potentially increasing availability for moderate-income homebuyers who meet the income limit. Borrowers could benefit from easier access to homeownership financing without standard monthly payments.
International Relations: No direct effects are outlined in the legislation.

## Main Stakeholders Affected

Mortgage lenders and financial institutions offering these loans.
Homebuyers whose income falls at or below 140 percent of area median income.
Homeowners using the property as their primary residence.
The Internal Revenue Service and federal tax system.
Broader housing market participants, such as real estate professionals and secondary mortgage investors.

## Notable Legal, Constitutional, or Political Implications The measure relies on Congress’s authority to set tax rules and could influence future housing policy debates. It introduces no apparent constitutional conflicts but represents a policy choice to use tax incentives for home financing. The bill was introduced with bipartisan sponsorship and referred to the House Committee on Ways and Means for consideration.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Moore, Blake D. [R-UT-1]

Cosponsors (5)

Rep. Panetta, Jimmy [D-CA-19], Rep. Barr, Andy [R-KY-6], Rep. Harrigan, Pat [R-NC-10], Rep. Moore, Tim [R-NC-14], Rep. Bean, Aaron [R-FL-4]

Recent Actions

2026-03-26: Referred to the House Committee on Ways and Means.
2026-03-26: Introduced in House
2026-03-26: Introduced in House

Bill Versions

Shared Home Appreciation for Residential Equity Act — issued 2026-03-26 — PDF (4 pages)