Senate bill offers landlords up to $250,000 per unit in first-year tax deductions
In committeeS. 4080Latest action
Sponsor: Lisa Blunt Rochester · Senator · DE
AIDecoded by AI · checked against the recordRead the official text
Official title: Rental Housing Investment Act
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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S 4080 lets developers deduct up to $150,000—or $250,000 for affordable units—per new rental unit in the first year instead of over 27.5 years.
50-second read · 4 questions answered below
What does this do?
S 4080 allows owners of newly built residential rental properties to deduct up to $150,000 per unit in the first year the property is placed in service, replacing the standard 27.5-year depreciation schedule. For properties that meet federal low-income housing requirements, the deduction increases to $250,000 per unit. Only newly constructed buildings qualify; purchases or renovations of existing properties are excluded.
Who does it affect?
The bill directly affects real estate developers, landlords, and investors who build new residential rental properties. Renters are not directly affected but could be indirectly affected if the incentive results in more rental units being built.
Why does it matter?
Owners who convert a property away from rental use within 10 years must repay the tax savings, or within 15 years for affordable housing units. The bill was introduced in the Senate in March 2026 and has been referred to the Finance Committee, where it must receive approval before advancing.
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Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedMar 12, 2026
- Senate committeeYou are here · Mar 12, 2026
- Senate vote
- House
- The president's desk
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the president.
Latest action: — Read twice and referred to the Committee on Finance.