Make the American Dream Real Again Act

Bill Number

H.R. 8677

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Taxation

Status

Introduced

Latest Action

2026-05-07: Referred to the House Committee on Ways and Means.

Last Updated

2026-05-13T15:57:32Z

AI-Generated Summary

Purpose

The "Make the American Dream Real Again Act" (H.R. 8677) aims to encourage home sales to first-time homebuyers by providing a refundable tax credit to sellers who cover certain buyer acquisition costs, making homeownership more accessible.

Key Provisions

• Eligibility: Applies to individuals who sell their principal residence (main home, as defined under existing tax law section 121) to a first-time homebuyer.
• First-time homebuyer: An individual (and spouse, if married) with no ownership interest in a principal residence in the prior 2 years.
• Credit Amount: Refundable tax credit equal to the lesser of:
• Amount paid by the seller for the buyer's qualified home acquisition expenses (e.g., down payment, inspection fees, closing costs).
• Reduction in the seller's tax liability if gain from the home sale were excluded from income.
• Administration: U.S. Treasury Secretary to issue regulations for implementation.
• Effective Date: Taxable years beginning after December 31, 2026.

Significant Changes to Existing Law

• Adds new section 36C to the Internal Revenue Code (IRC), creating a novel refundable credit in subpart C of part IV (refundable credits like the premium tax credit under section 36B).
• Includes conforming updates to IRC sections on tax refunds and definitional tables, plus a U.S. Code section on interest payments for overpayments.

Potential Impacts

• Citizens: Sellers receive tax relief (potentially exceeding their tax bill since it's refundable), indirectly lowering costs for first-time buyers; may boost home sales and entry-level homeownership.
• Government Agencies: IRS must process new credits, administer regulations, and handle potential revenue losses from refunds.
• No direct international relations impact.

Main Stakeholders Affected

• Home sellers (primary beneficiaries via tax credit).
• First-time homebuyers (indirectly benefit from seller-covered costs).
• IRS and Treasury Department (implementation and enforcement).
• General taxpayers (possible offset via reduced federal revenue).

Notable Legal, Constitutional, or Political Implications

• Legal: Introduces targeted incentive in tax code without altering core home sale gain exclusion (section 121); refundable nature ensures accessibility even for low-tax-liability sellers.
• Constitutional: No apparent issues; standard congressional tax authority under Article I.
• Political: Promotes "American Dream" of homeownership, potentially influencing housing markets but raising fiscal cost concerns (unquantified revenue impact).

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

Sponsor

Rep. Burlison, Eric [R-MO-7]

Cosponsors (1)

Rep. Lawler, Michael [R-NY-17]

Recent Actions

• 2026-05-07: Referred to the House Committee on Ways and Means.
• 2026-05-07: Introduced in House
• 2026-05-07: Introduced in House

Bill Versions

• Make the American Dream Real Again Act — issued 2026-05-07 — PDF (4 pages)