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S. 4080119th CongressIn committeeLatest action Mar 12, 2026Decoded by AI · checked against the record
The plain-language version leads. The official text is always the reference.
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.
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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.
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.
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.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
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.