What does Preamble of Rental Housing Investment Act do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment aims to provide bonus depreciation for long-term residential rental housing.

What does SHORT TITLE. of Rental Housing Investment Act do?

This bill is formally titled the Rental Housing Investment Act.

What does TAX INCENTIVES FOR LONG-TERM RESIDENTIAL RENTAL HOUSING. of Rental Housing Investment Act do?

This section amends Section 168 of the Internal Revenue Code of 1986 to create a special depreciation allowance for long-term residential rental property. The allowance is the lesser of $150,000 multiplied by the number of dwelling units or 100 percent of the adjusted basis of the property. Long-term residential rental property is defined as property placed in service in the United States after the date of enactment, used as residential rental property with at least two dwelling units, and designated by the taxpayer. If the property ceases to be used as described, Section 1245 applies, potentially resulting in recapture of depreciation. For properties meeting certain affordable housing requirements (as defined in section 42(g)(1)), the allowance increases to $250,000 per dwelling unit. An election to apply this allowance must be made on the taxpayer's return and is generally not revocable without Secretary consent. The amendments apply to property placed in service more than 12 months after the date of enactment.

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Rental Housing Investment Act

Last updated: 5/21/2026 · Introduced: 5/21/2026

Author: Linda Sánchez (D-CA)

TL;DR (AI)

This bill creates a new depreciation allowance for long-term residential rental property, allowing taxpayers to deduct up to $150,000 per dwelling unit or 100% of the property's adjusted basis.
Properties meeting affordable housing requirements can qualify for an increased depreciation allowance of $250,000 per dwelling unit.
The depreciation allowance applies to property placed in service more than 12 months after the bill's enactment, and taxpayers must make an election to utilize it.

119th Congressin committeeS. 4080(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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