H.R. 4352 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Ways and Means, Jul 10, 2025
What this bill does
In plain words · AI-written from the official summaryLimits tax breaks for large rental property owners
This bill would prevent large-scale rental property investors from taking certain tax deductions. Specifically, if someone owns 50 or more single-family rental homes, they couldn't deduct the interest they pay on loans for those properties or claim depreciation deductions (a tax benefit that accounts for property wear over time). The bill carves out some exceptions: these deductions would still be allowed for affordable housing built with the low-income housing tax credit program, for newly constructed rental homes, and when selling a property to a homebuyer, nonprofit housing organization, or similar entity focused on housing access.
How it affects you
If you're an individual investor or small business owner with fewer than 50 rental properties, this doesn't change your tax situation. If you own 50 or more single-family rental homes, you'd lose some tax deductions on those properties, which could increase your tax bill unless you qualify for one of the exceptions. The bill is aimed at large-scale landlords rather than ordinary homeowners or typical small investors.
Read the official summary (Introduced in House, Jul 10, 2025)
Houses Over Middle-Class Exploitation Schemes Act or the HOMES Act
This bill prohibits a taxpayer who owns (directly or indirectly) 50 or more single-family residential rental properties (disqualified single-family property owner) from claiming a federal tax deduction for interest paid (or accrued) in connection with such properties or a federal tax deduction for depreciation in connection with such properties.
The bill generally defines a single-family residential rental property as any residential rental property containing four or fewer dwelling units and improvements to real property related to such dwelling units.
However, under the bill, a disqualified single-family property owner may still claim a tax deduction for interest and depreciation on (1) single-family residential rental property for which the low-income housing tax credit (LIHTC) may be claimed and (2) certain newly constructed single-family residential rental properties. (The LIHTC program awards tax credits for newly-constructed or substantially rehabilitated low-income housing.)
The bill also allows a disqualified single-family property owner to claim a federal tax deduction for interest or depreciation in connection with a single-family residential rental property in the year such property is sold if it is sold to
• an individual for use as a principal residence;
• a non-profit organization that creates, develops, or preserves affordable housing;
• certain community development organizations;
• a land bank;
• any resident-owned cooperative or community land trust; or
• a public housing agency subsidiary.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH. R. 4352
A BILL
HOMES Act
Sponsor: Rep. Emilia Strong Sykes (D-OH-13) · Introduced Jul 10, 2025 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Jul 10, 2025: “Referred to the House Committee on Ways and Means.”