Rep. John McGuire Introduces the American Dream Act

WASHINGTON, D.C. - Today, U.S. Representative John McGuire (VA-05) introduced the American Dream Act. This bill will allow individuals 65 years-of-age or older to sell any real property, including rental and vacation homes, with the sales price of $500,000 or less to a first-time homebuyer without the sale being subject to capital gains.

"I am proud to introduce this legislation, which takes meaningful steps toward restoring the American Dream of homeownership and a future for young people," said Congressman McGuire. "The American Dream has always been to own a home; however, that dream has been slipping away. Today's housing market makes it increasingly difficult for first-time buyers to find an affordable home, leaving many with little choice but to become a life-long renter. The American Dream Actaddresses this challenge by incentivizing homeowners 65 years-of-age and older to sell properties valued under $500,000 to first-time buyers; increasing inventory and ensuring our younger generations have a fair opportunity to achieve homeownership. I am grateful to Representative Tom Barrett (MI-07) for co-leading as well as Representative Pete Stauber (MN-08), Representative Marlin Stutzman (IN-03), and Representative Derek Schmidt (KS-02) for being original cosponsors of this vital piece of legislation. We are taking real steps to help the younger generation achieve the American Dream of homeownership by increasing the availability of affordable homes in our country."

"The American Dream of homeownership has become out of reach for too many young families across Michigan and the United States," said Congressman Barrett (MI-07). "Housing prices continue to rise as the supply of starter homes on the market shrinks because too many seniors feel financially locked into the properties they own. By offering an expanded tax incentive for selling to a first-time homebuyer, this legislation will finally shake things up by moving homes out of the rental market and into the purchase market while also driving costs down for new buyers and helping seniors afford the retirement they deserve."

"TheAmerican Dream Actis a major win for young families and first-time homebuyers," said Congressman Stauber (MN-08). "This legislation will unlock a supply of affordably priced homes, so more hardworking Americans have their chance at the American dream."

"The more barriers that can be removed between young families and homeownership the better," said Congressman Stutzman (IN-03). "Through adjusting the tax code to incentivize seniors to sell their homes to first-time homebuyers, the America Dream Act will put homeownership into reach for many families who previously would be life long renters. I am proud to stand with Congressman McGuire in introducing this legislation that will make affordability in the housing market a reality."

"Removing the capital gains tax on sales to first-time homeowners would tend to increase the supply of houses available for first-time buyers," said Congressman Schmidt (KS-02). "This is a creative and reasonable step to make home ownership more possible for new buyers, and I am proud to cosponsor."

Background:

• The American Dream Act amends the Internal Revenue Code of 1986 to exclude capital gains for the period of five years effective December 31, 2026, on the sale of any real property-including vacation and rental properties--with the sales price of $500,000 or less to a first-time homebuyer by individuals who have attained the age of 65 or older.

Read the full bill text here.