[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3673 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 3673

   To amend the Internal Revenue Code of 1986 to impose a tax on the 
  purchase of single-family homes by certain large investors, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 25, 2024

Mr. Reed (for himself, Ms. Smith, Mrs. Gillibrand, Mr. Blumenthal, Ms. 
  Klobuchar, Mr. Fetterman, and Ms. Baldwin) 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 impose a tax on the 
  purchase of single-family homes by certain large investors, 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 ``Affordable Housing and Homeownership 
Protection Act of 2024''.

SEC. 2. TAX ON CERTAIN INVESTOR PURCHASES OF SINGLE-FAMILY HOMES.

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

                 ``Subchapter G--Certain Home Purchases

``SEC. 4499. TAX ON CERTAIN INVESTOR PURCHASES OF SINGLE-FAMILY HOMES.

    ``(a) In General.--There is hereby imposed on each covered investor 
a tax equal to the applicable percentage of the purchase price paid by 
such covered investor with respect to any covered home purchase during 
the taxable year.
    ``(b) Applicable Percentage.--For purposes of subsection (a), the 
applicable percentage is--
            ``(1) 1 percent in the case of a medium-sized investor,
            ``(2) 3 percent in the case of a large investor, and
            ``(3) 5 percent in the case of a giant investor.
    ``(c) Covered Investor.--For purposes of this section--
            ``(1) In general.--The term `covered investor' means any 
        person, other than a person described in paragraph (6), who is 
        a medium-sized investor, large investor, or giant investor.
            ``(2) Medium-sized investor.--The term `medium-sized 
        investor' means any person who owns more than 15 and not more 
        than 25 single-family homes as of the last day of the taxable 
        year.
            ``(3) Large investor.--The term `large investor' means any 
        person who owns more than 25 and not more than 100 single-
        family homes as of the last day of the taxable year.
            ``(4) Giant investor.--The term `giant investor' means any 
        person who owns more than 100 single-family homes as of the 
        last day of the taxable year.
            ``(5) New construction excluded.--Any new single-family 
        home which is constructed by the taxpayer shall not be taken 
        into account for purposes of this subsection, unless such 
        single-family home replaces a previous single-family home on 
        the same site which was purchased by the taxpayer and replaced 
        with the newly constructed single-family home.
            ``(6) Exceptions.--A person described in this paragraph 
        is--
                    ``(A) any organization which is exempt from 
                taxation under section 501(a), the primary purpose of 
                which is related to affordable housing, housing 
                counseling, or neighborhood stabilization,
                    ``(B) any State or political subdivision thereof,
                    ``(C) any public housing authority or its 
                instrumentalities,
                    ``(D) any land bank, or
                    ``(E) any community land trust.
    ``(d) Terms Relating to Home Purchase, etc.--For purposes of this 
section--
            ``(1) Covered home purchase.--
                    ``(A) In general.--The term `covered home purchase' 
                means the purchase of a single-family home by a covered 
                investor.
                    ``(B) New construction.--The construction of a new 
                single-family home by the taxpayer shall not be treated 
                as a purchase, unless such new single-family home is 
                taken into account for purposes of subsection (c) by 
                reason of paragraph (5) thereof.
            ``(2) Purchase price.--The term `purchase price' means the 
        total amount paid, including the amount of any indebtedness 
        incurred or assumed, by the taxpayer to acquire a single-family 
        home from the seller.
            ``(3) Single-family home.--The term `single-family home' 
        has the meaning given such term by section 81.2 of title 24, 
        Code of Federal Regulations.
            ``(4) Own.--The term `own' means directly or indirectly 
        possessing a majority interest in a single-family home.
    ``(e) Aggregation Rules.--
            ``(1) In general.--Except as otherwise provided in 
        paragraph (2), all persons treated as a single employer under 
        subsection (a) or (b) of section 52, or subsection (m) or (o) 
        of section 414, shall be treated as 1 person for purposes of 
        this section.
            ``(2) Modifications.--For purposes of this subsection--
                    ``(A) section 52(a) shall be applied by 
                substituting `component members' for `members', and
                    ``(B) for purposes of applying section 52(b), the 
                term `trade or business' shall include any activity 
                treated as a trade or business under paragraph (5) or 
                (6) of section 469(c) (determined without regard to the 
                phrase `To the extent provided in regulations' in such 
                paragraph (6)).
            ``(3) Component member.--For purposes of paragraph (2), the 
        term `component member' has the meaning given such term by 
        section 1563(b), determined without regard to paragraph (2) 
        thereof.
    ``(f) Reporting.--Each person who is a covered investor for the 
taxable year shall attach to the return of the tax imposed by this 
section a report containing information, in such form as the Secretary 
shall prescribe, on--
            ``(1) the number of single-family homes owned on the last 
        day of the taxable year by such person, and
            ``(2) the number of single-family homes purchased by such 
        person during the taxable year.''.
    (b) Clerical Amendment.--The table of subchapters for chapter 36 of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new item:

               ``subchapter g--certain home purchases''.

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2023.

SEC. 3. REVENUES.

    The Secretary of the Treasury shall allocate or otherwise transfer 
such revenues resulting from the tax imposed by section 4499 of the 
Internal Revenue Code of 1986 as follows:
            (1) 65 percent of such amounts to the Secretary of Housing 
        and Urban Development to provide additional funding for the 
        Housing Trust Fund established under section 1338(a) of the 
        Federal Housing Enterprises Financial Safety and Soundness Act 
        of 1992 (12 U.S.C. 4568(a)).
            (2) 35 percent of such amounts to provide additional 
        funding for the Capital Magnet Fund established under section 
        1339(a) of the Federal Housing Enterprises Financial Safety and 
        Soundness Act of 1992 (12 U.S.C. 4569(a)).

SEC. 4. HOUSING TRUST FUND SMALL STATE MINIMUM.

    Section 1338(c)(4)(C) of the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992 (12 U.S.C. 4568(c)(4)(C)) is amended 
by striking ``$3,000,000'' each place that term appears and inserting 
``$7,000,000''.
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