To amend the Internal Revenue Code of 1986 to temporarily increase the capital gains exclusion for any qualifying senior who sells a principal residence during a qualifying year, and for other purposes.
HB9064 would temporarily expand the federal capital gains exclusion for the sale of a principal residence for certain older homeowners. Under current law, taxpayers may exclude up to $250,000 of gain on a home sale, or $500,000 for married couples filing jointly; this bill would raise those limits to $1,000,000 for qualifying senior taxpayers during taxable years 2027 through 2030. The higher exclusion would apply when the home is sold or exchanged after December 31, 2026, and before January 1, 2031.
To qualify, an individual must be at least 65 years old on the date of sale, and the residence must have been owned as a principal residence for at least 25 years. The bill also specifies different treatment for married taxpayers depending on whether they file jointly or separately, and it applies only to taxable years beginning after December 31, 2026.
The bill would amend Section 121 of the Internal Revenue Code of 1986, changing the federal tax treatment of gains from the sale of a primary residence for a limited class of senior homeowners. It would not alter state law directly, but it could affect federal taxable income, home-sale planning, housing mobility, and the timing of sales for older homeowners who have held a home for decades. The measure is temporary and would sunset for sales after the 2030 tax year window.
Based on the available record, the bill appears to be framed as a tax-relief measure for long-term senior homeowners, with no recorded committee debate or votes showing opposition or support. The sponsor’s framing suggests a favorable policy intent toward retirees and older homeowners who may have substantial home equity. Because there are no transcripts or vote tallies, the broader sentiment cannot be measured beyond the bill’s supportive purpose and its referral to the House Committee on Ways and Means.
The main policy issue is the size and targeting of the tax benefit. Supporters would likely view the bill as relief for seniors who have lived in a home for many years and may face large taxable gains in high-cost housing markets, while critics could question whether the expanded exclusion is too generous, whether it disproportionately benefits higher-income homeowners, and whether it narrows the tax base. The age threshold, 25-year ownership requirement, and temporary time window are the key eligibility limits that define who benefits and may also be points of debate.