HB8116, the Shared Home Appreciation for Residential Equity Act or “SHARE Act,” would amend the Internal Revenue Code to create a new tax exclusion for certain proceeds from shared appreciation mortgage contracts. In general, the bill would exclude from gross income amounts a lender receives that exceed the original principal of a shared appreciation mortgage, so long as the borrower’s income at the time the loan was issued did not exceed 140 percent of area median income for the census tract and the property was the borrower’s principal residence. It would also exclude gain from the disposition of certain capital assets backed by those qualifying mortgages.
The bill defines a shared appreciation mortgage as a second-lien mortgage on a one- to four-family dwelling in which the lender shares in a predetermined percentage of the home’s appreciation, subject to limits on the lender’s share, the loan amount, and repayment timing. The mortgage must be subordinate to a first-lien qualified mortgage and generally cannot require repayment until the first mortgage matures, the home is sold, the first mortgage is paid off, or default occurs. The tax change would apply to amounts received after December 31, 2025.
Impact
If enacted, the bill would add a new section 139J to the Internal Revenue Code and amend the Code’s table of sections to reflect the new exclusion. Its practical effect would be to reduce or eliminate federal income tax on qualifying shared appreciation mortgage proceeds, which could make these products more attractive to lenders and potentially expand financing options for moderate-income homeowners. The bill would affect taxpayers, mortgage lenders, and investors involved in shared appreciation or equity-sharing home loans, while leaving nonqualifying mortgages outside the exclusion.
Sentiment
The available context suggests a generally supportive or at least constructive posture toward the bill, as it was introduced by bipartisan sponsors—Representatives Moore of Utah, Panetta, and Barr—and referred to the House Committee on Ways and Means without recorded opposition in the provided materials. No committee transcript or vote data is available, so there is no documented floor debate or formal roll-call sentiment to assess. Based on the text, the bill appears framed as a targeted housing-finance and tax policy measure rather than a broadly controversial tax change.
Contention
The main policy questions likely concern the scope and design of the tax exclusion, especially the income cap tied to 140 percent of area median income, the definition of qualifying principal residences, and the treatment of second-lien shared appreciation mortgages. Potential points of contention include whether the exclusion could encourage riskier home-financing products, whether the 49 percent cap and repayment triggers are sufficient consumer protections, and whether the tax benefit should be limited to borrowers in lower- and moderate-income neighborhoods. Lenders and housing advocates may favor the measure for expanding access to equity-based financing, while critics may worry about complexity, tax expenditure costs, or uneven benefits across markets.
Enacting the health care sharing ministries tax deduction act to provide a subtraction modification for qualified health care sharing expenses paid by a qualified individual and certain qualified health care shares received by a qualified individual.
Enacting the health care sharing ministries tax deduction act to provide a subtraction modification for qualified health care sharing expenses paid by a qualified individual and certain qualified health care shares received by a qualified individual.
Providing for licensing and regulation of shared equity providers and shared equity agreements and for duties of Department of Banking and Securities; and imposing penalties.