H.R. 8116

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8116 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 8116

To amend the Internal Revenue Code of 1986 to exclude from gross income 
certain proceeds of shared appreciation mortgage contracts.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

March 26, 2026

Mr. Moore of Utah (for himself, Mr. Panetta, and Mr. Barr) 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 from gross income 
certain proceeds of shared appreciation mortgage contracts.

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 ``Shared Home Appreciation for 
Residential Equity Act'' or the ``SHARE Act''.

SEC. 2. EXCLUSION OF CERTAIN PROCEEDS OF A SHARED APPRECIATION MORTGAGE 
CONTRACT.

(a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139I the following new section:

``SEC. 139J. CERTAIN PROCEEDS OF A SHARED APPRECIATION MORTGAGE 
CONTRACT.

``(a) In General.--Gross income shall not include--
``(1) any amount received by a lender as repayment of a 
shared appreciation mortgage which exceeds the original 
principal obligation of such mortgage if--
``(A) the income of the borrower did not exceed 140 
percent of the area median income for the census tract 
in which the real property is located for the calendar 
year in which such loan was issued, and
``(B) the real property is a residential property 
which was the principal residence (as such term is used 
in section 121) of the borrower, or
``(2) any gain from the disposition of so much of a capital 
asset as is composed of or secured by mortgages described in 
paragraph (1).
``(b) Shared Appreciation Mortgage.--For purposes of this section, 
the term `shared appreciation mortgage' means a mortgage secured by a 
second lien on a property upon which there is located a dwelling 
designed principally for occupancy by one to four families which--
``(1) provides for the mortgagee to share in a 
predetermined percentage of the property's net appreciated 
value which does not exceed the percentage which is the 
quotient of--
``(A) the amount of such mortgage, divided by
``(B) the purchase price of such property,
``(2) does not require the mortgagor to make any payment 
other than the payment described in paragraph (1),
``(3) the amount of which does not exceed 49 percent of the 
purchase price of such property,
``(4) is subordinate to a first lien that is a `qualified 
mortgage' as such term is defined under section 129C(c)(2) of 
the Truth in Lending Act, and
``(5) does not require repayment before--
``(A) the scheduled maturity date of the mortgage 
secured by the first lien on the property;
``(B) the sale of the property;
``(C) repayment in full of the mortgage secured by 
the first lien on the property;
``(D) the scheduled maturity date of the mortgage 
secured by the first lien on the property as altered by 
any acceleration of such mortgage in accordance with 
the terms of such mortgage; or
``(E) a default under the mortgage.''.
(b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 139I the following new item:

``Sec. 139J. Certain proceeds of a shared appreciation mortgage 
contract.''.
(c) Effective Date.--The amendments made by this section shall 
apply to amounts received after December 31, 2025.
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