US Codex
Bill
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To amend the Internal Revenue Code of 1986 to impose an excise tax on the acquisition of single-family homes by certain large investors.

H.R. 8582 · 117th Congress · Jul 28, 2022 · Lineage

A BILL

Section 1 Excise tax on acquisitions of single-family homes by certain large investors

(a)
In general— Chapter 36 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter:

“E Acquisition of single-Family homes by large investors

“4491. Tax on acquisition of single-family homes by certain large investors

“(a) Tax imposed—In the case of the sale of any single-family home to a specified large investor, there is hereby imposed a tax equal to 100 percent of the amount paid for such home.

“(b) By whom paid—The tax imposed under subsection (a) shall be paid by the specified large investor.

“(c) Single-Family home—For purposes of this section, the term “single-family home” means any real property located in the United States if such property includes at least 1 dwelling unit and not more than 2 dwelling units.

“(d) Specified large investor—For purposes of this section, the term “specified large investor” means any person for any taxable year if the aggregate fair market value of all assets of such person (reduced by the aggregate debts of the taxpayer) determined as of the beginning of such taxable year exceeds $20,000,000. Such term shall not include any governmental entity or any organization described in section 501(c) and exempt from tax under section 501(a).

“(e) Exceptions

“(1) Principal residence—In the case of a specified large investor who is an individual, subsection (a) shall not apply to the sale of any single-family home to such specified large investor if such home is used as the principal residence of such investor.

“(2) Low-income housing programs—Subsection (a) shall not apply to the sale of any single-family home to a specified large investor if the acquisition of such home by such investor is pursuant to a governmental program the purpose of which is to provide housing to low-income individuals.

“(f) Controlled groups—For purposes of subsection (d)—

“(1) Corporations

“(A) In general—All persons treated as a controlled group shall be treated as 1 person.

“(B) Controlled group—The term controlled group has the meaning given to such term by subsection (a) of section 1563; except that for such purposes the phrase “more than 50 percent” shall be substituted for the phrase “at least 80 percent” each place it appears in such subsection.

“(2) Nonincorporated persons under common control—Under regulations prescribed by the Secretary, principles similar to the principles of paragraph (1) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation.

“(g) Transfer of revenues to the housing trust fund

“(1) In general—There are hereby appropriated to the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 amounts equivalent to the taxes received in the Treasury under this section.

“(2) Administration of transfers—Rules similar to the rules of section 9601 shall apply for purposes of this subsection.”

(b)
Clerical amendment— The table of subchapters for chapter 36 of such Code is amended by adding at the end the following new item:
(c)
Annual report— With respect to each calendar year beginning after the date of the enactment of this Act, the Secretary of Housing and Urban Development shall make publicly available an annual report which evaluates the trends in purchases of single-family homes (as defined in section 4491(c) of the Internal Revenue Code of 1986) by specified large investors (as defined in section 4491(d) of such Code).
(d)
Effective date— The amendments made by this section shall apply to sales after the date of the enactment of this Act.