H.R. 7216: Make American Housing Affordable (MAHA) Act of 2026

This bill, known as the Make American Housing Affordable (MAHA) Act of 2026, aims to create a new tax credit designed to help individuals who purchase their primary home. Here’s a breakdown of what the bill proposes:

Housing Affordability Credit

The bill introduces a new tax credit called the "housing affordability credit." Here are the main details:

• Amount of Credit: Individuals who qualify can receive a credit of $5,000 against their taxes. For couples filing jointly, this credit doubles to $10,000.
• Eligibility: To qualify for this credit, an individual must:
  • Purchase a principal residence within the taxable year.
  • Not have claimed this credit in any of the four taxable years prior to the year of purchase.
• Income Phaseout: The credit begins to decrease for individuals whose modified adjusted gross income exceeds $250,000. Specifically, the credit is reduced in proportion to income over this threshold, with the maximum amount phasing out completely when income reaches $300,000 for individuals or $350,000 for couples filing jointly.

Conforming Amendments

The bill makes several conforming amendments to existing tax law to accommodate the introduction of the housing affordability credit. This includes changes to the Internal Revenue Code to include the new credit section.

Effective Date

The changes proposed in this bill would take effect for taxable years that begin after the bill is enacted.

Relevant Companies

None found