I 
119TH CONGRESS 
2D SESSION 
H. R. 7400 
To amend the Internal Revenue Code of 1986 to exclude all gain from 
the sale of a principal residence or any residence which is sold to 
a first-time homebuyer, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 5, 2026 
Ms. MACE (for herself and Ms. BOEBERT) introduced the following bill; which 
was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to exclude 
all gain from the sale of a principal residence or any 
residence which is sold to a first-time homebuyer, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Making Homeowner-
ship Affordable Again Act’’. 
VerDate Sep 11 2014 
22:01 Feb 09, 2026
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7400.IH
H7400
kjohnson on DSK7ZCZBW3PROD with $$_JOB
SEC. 2. FULL EXCLUSION OF GAIN FROM SALE OF PRIN-
CIPAL RESIDENCE OR RESIDENCE SOLD TO 
FIRST-TIME HOMEBUYER. 
(a) ELIMINATION OF DOLLAR LIMITATIONS ON EX-
CLUSION OF GAIN.— 
(1) IN GENERAL.—Section 121(b) of the Inter-
nal Revenue Code of 1986 is amended— 
(A) by striking paragraphs (1), (2), and 
(4), and 
(B) by redesignating paragraphs (3) and 
(5) as paragraphs (1) and (2), respectively. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 121(c) of such Code is amend-
ed— 
(i) in paragraph (1), by striking ‘‘, 
and subsection (b)(3)’’ and all that follows 
through ‘‘2 years’’ and inserting ‘‘, and 
subsection (b)(1), shall not apply’’, and 
(ii) in paragraph (2)(A)(ii), by strik-
ing ‘‘subsection (b)(3)’’ and inserting 
‘‘subsection (b)(1)’’. 
(B) Section 121(d) of such Code is amend-
ed— 
(i) in paragraph (9)(A), by striking 
‘‘in subsections (a) and (c)(1)(B)’’ and in-
serting ‘‘in subsection (a)’’, and 
VerDate Sep 11 2014 
22:01 Feb 09, 2026
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7400.IH
H7400
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(ii) in paragraph (12)(A), by striking 
‘‘in subsections (a) and (c)(1)(B)’’ and in-
serting ‘‘in subsection (a)’’. 
(b) ALLOWANCE
OF EXCLUSION
OF GAIN FROM 
SALES TO FIRST-TIME HOMEBUYERS.— 
(1) IN GENERAL.—Section 121(c)(2)(B) of such 
Code is amended— 
(A) by striking ‘‘exchange is by reason of’’ 
and inserting ‘‘exchange is— 
‘‘(i) by reason of’’, 
(B) 
by 
striking 
‘‘unforeseen 
cir-
cumstances.’’ and inserting ‘‘unforeseen cir-
cumstances, or’’, and 
(C) by adding at the end the following: 
‘‘(ii) to a first-time homebuyer.’’. 
(2) FIRST-TIME HOMEBUYER.—Section 121(c) 
of such Code, as amended by the preceding provi-
sions of this Act, is amended by adding at the end 
the following new paragraph: 
‘‘(3) FIRST-TIME HOMEBUYER.—For purposes 
of this subsection, the term ‘first-time homebuyer’ 
means any individual if such individual (and if mar-
ried, such individual’s spouse) had no present owner-
ship interest in a principal residence during the 3- 
year period ending on the date of the sale or ex-
VerDate Sep 11 2014 
22:01 Feb 09, 2026
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7400.IH
H7400
kjohnson on DSK7ZCZBW3PROD with $$_JOB
change of the property to which this subsection ap-
plies.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales and exchanges made after 
the date of the enactment of this Act. 
Æ 
VerDate Sep 11 2014 
22:01 Feb 09, 2026
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H7400.IH
H7400
kjohnson on DSK7ZCZBW3PROD with $$_JOB