,,ii  #aai? ,,congress  #a/ ,session    
,s4 #ghh  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,febru>y #bg1 #bjbe    
,mr4 ,m]kley 7= himself1 ,mr4 ,k+1 ,mr4 
,van ,holl51 ,mr4 ,gallego1 ,mr4 ,s&]s1 
& ,mr4 ,kelly7 introduc$ ! foll[+ bill2 
:i* 0 read twice & ref]r$ to !          
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 impose an excise tax on ! failure (    
c]ta9 h$ge funds own+ excess s+le-family
 resid5ces to dispose ( su* resid5ces1 &
 = o!r purposes4  #a4 ,%ort title ,?is  
,act may be cit$ z ! ,,hope 7,humans ov]
 ,private ,equity7 = ,home[n]%ip ,act4  
#b4 ,excise tax on c]ta9 taxpay]s fail+ 
to sell excess s+le-family resid5ces    
7a7 ,9 g5]al ,subtitle ,d ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new *apt]3  #ej;,b    
,excess s+le-family resid5ces  ,sec4    
#ejjj;,e4 ,newly acquir$ s+le-family    
resid5ces4 ,sec4 #ejjj;,f4 ,excess      
s+le-family resid5ces4 ,sec4 #ejjj;,g4  
,def9itions & o!r special rules4        

#ejjj;,e4 ,newly acquir$ s+le-family    
resid5ces  7a7 ,9 g5]al ,9 ! case ( a   
h$ge fund taxpay]1 !re is h]eby impos$ a
 tax on ! acquisition ( any newly       
acquir$ s+le-family resid5ce equal to ! 
great] (-- 7#a7 #ae p]c5t ( ! pur*ase   
price1 or  7#b7 #aj1jjj4  7b7 ,newly    
acquir$ s+le-,family resid5ce ,=        
purposes ( ?is section1 ! t]m newly     
acquir$ s+le-family resid5ce means any  
s+le-family resid5ce :i* 0 acquir$ by ! 
taxpay] 9 any taxable ye> :i* beg9s aft]
 ! date ( ! enactm5t ( ?is *apt]4  7c7  
,pur*ase price ,= purposes ( ?is        
section1 ! t]m pur*ase price means !    
adju/$ basis ( ! newly acquir$          
s+le-family resid5ce on ! date su*      
resid5ce is pur*as$4  #ejjj;,f4 ,excess 
s+le-family resid5ces  7a7 ,9 g5]al ,9 !
 case ( an applicable taxpay] :o fails  
to meet ! requirem5ts ( subsection 7b71 
!re is h]eby impos$ a tax equal to !    
product (--  7#a7 #e1jjj1 &  7#b7 !     
excess (--  7,a7 ! numb] ( applicable   
s+le-family resid5ces own$ by ! taxpay] 

z ( ! la/ day ( ! taxable ye>1 ov]  7,b7
 ! maximum p]missible units = ! taxable 
ye>4  7b7 ,requirem5t  7#a7 ,9 g5]al ,an
 applicable taxpay] meets ! requirem5t (
 ?is subsection = any taxable ye> if !  
numb] ( applicable s+le-family resid5ces
 own$ by ! taxpay] z ( ! la/ day ( !    
taxable ye> is equal to or less ?an !   
maximum p]missible units det]m9$ )      
respect to su* taxpay] = su* taxable    
ye>4  7#b7 ,special rule = c]ta9 sales  
,= purposes ( apply+ p>agraph 7#a71 a   
s+le-family resid5ce :i* is sold or     
transf]r$ 9 a disqualifi$ sale dur+ !   
taxable ye> %all be treat$ z a          
s+le-family resid5ce :i* is own$ by !   
applicable taxpay] z ( ! la/ day ( su*  
taxable ye>4  7c7 ,maximum p]missible   
units ,! maximum p]missible units )     
respect to any applicable taxpay] = any 
taxable ye> %all be det]m9$ z foll[s3 ,9
 ! case (--,! maximum p]missible units =
 a h$ge fund taxpay] is--,! maximum     
p]missible units = any o!r applicable   
taxpay] is-- ! fir/ full taxable ye>    

beg9n+ aft] ! applicable date 4 4 4#ij  
p]c5t ( ! numb] ( applicable s+le-family
 resid5ces own$ by ! taxpay] on !       
applicable date#ej plus #ij p]c5t ( !   
numb] ( applicable s+le-family resid5ces
 own$ by ! taxpay] on ! applicable date 
! second taxable ye> beg9n+ aft] !      
applicable date 4 4 4#hj p]c5t ( ! numb]
 ( applicable s+le-family resid5ces own$
 by ! taxpay] on ! applicable date#ej   
plus #hj p]c5t ( ! numb] ( applicable   
s+le-family resid5ces own$ by ! taxpay] 
on ! applicable date ! ?ird taxable ye> 
beg9n+ aft] ! applicable date 4 4 4#gj  
p]c5t ( ! numb] ( applicable s+le-family
 resid5ces own$ by ! taxpay] on !       
applicable date#ej plus #gj p]c5t ( !   
numb] ( applicable s+le-family resid5ces
 own$ by ! taxpay] on ! applicable date 
! f\r? taxable ye> beg9n+ aft] !        
applicable date 4 4 4#fj p]c5t ( ! numb]
 ( applicable s+le-family resid5ces own$
 by ! taxpay] on ! applicable date#ej   
plus #fj p]c5t ( ! numb] ( applicable   
s+le-family resid5ces own$ by ! taxpay] 

on ! applicable date ! fif? taxable ye> 
beg9n+ aft] ! applicable date 4 4 4#ej  
p]c5t ( ! numb] ( applicable s+le-family
 resid5ces own$ by ! taxpay] on !       
applicable date#ej plus #ej p]c5t ( !   
numb] ( applicable s+le-family resid5ces
 own$ by ! taxpay] on ! applicable date 
! six? taxable ye> beg9n+ aft] !        
applicable date 4 4 4#dj p]c5t ( ! numb]
 ( applicable s+le-family resid5ces own$
 by ! taxpay] on ! applicable date#ej   
plus #dj p]c5t ( ! numb] ( applicable   
s+le-family resid5ces own$ by ! taxpay] 
on ! applicable date ! sev5? taxable ye>
 beg9n+ aft] ! applicable date 4 4 4#cj 
p]c5t ( ! numb] ( applicable s+le-family
 resid5ces own$ by ! taxpay] on !       
applicable date#ej plus #cj p]c5t ( !   
numb] ( applicable s+le-family resid5ces
 own$ by ! taxpay] on ! applicable date 
! eigh? taxable ye> beg9n+ aft] !       
applicable date 4 4 4#bj p]c5t ( ! numb]
 ( applicable s+le-family resid5ces own$
 by ! taxpay] on ! applicable date#ej   
plus #bj p]c5t ( ! numb] ( applicable   

s+le-family resid5ces own$ by ! taxpay] 
on ! applicable date ! n9? taxable ye>  
beg9n+ aft] ! applicable date 4 4 4#aj  
p]c5t ( ! numb] ( applicable s+le-family
 resid5ces own$ by ! taxpay] on !       
applicable date#ej plus #aj p]c5t ( !   
numb] ( applicable s+le-family resid5ces
 own$ by ! taxpay] on ! applicable date 
any taxable ye> beg9n+ m ?an #i ye>s    
aft] ! applicable date 4 4 4#j #ej4  7d7
 ,def9itions ,= purposes ( ?is section--
  7#a7 ,applicable s+le-family resid5ce 
,! t]m applicable s+le-family resid5ce  
means any s+le-family resid5ce :i* 0    
acquir$ on or be=e ! applicable date4   
7#b7 ,applicable date  7,a7 ,9 g5]al ,! 
t]m applicable date means--  7i7 ! la/  
day ( ! fir/ full taxable ye> end+ on or
 aft] ! date ( ! enactm5t ( ?is *apt]1  
or  7ii7 9 ! case ( any taxpay] describ$
 9 subp>agraph 7,b71 ! date provid$ 9   
su* subp>agraph4  7,b7 ,taxpay]s *ang+  
/atus  7i7 ,9 g5]al ,9 ! case ( any     
applicable taxpay] describ$ 9 clause    
7ii71 ! applicable date means ! la/ day 

( ! taxable ye> imm$iately prec$+ !     
taxable ye> 9 :i* ! taxpay] is describ$ 
9 su* clause4  7ii7 ,applicable taxpay] 
describ$ ,an applicable taxpay] is      
describ$ 9 ?is clause ) respect to any  
taxable ye> if--  7,i7 su* taxpay] 0 n a
 h$ge fund taxpay] = ! prec$+ taxable   
ye>1 &  7,,ii7 su* taxpay] is a h$ge    
fund taxpay] = su* taxable ye>4  7#c7   
,disqualifi$ sale ,! t]m disqualifi$    
sale means any sale or transf] to-- 7,a7
 a corporation or o!r entity engag$ 9 a 
trade or bus9ess1 or  7,b7 an individual
 :o owns any o!r s+le-family resid5ce at
 ! "t ( su* sale or transf]4  #ejjj;,g4 
,def9itions & o!r special rules  7a7    
,applicable taxpay] ,= purposes ( ?is   
*apt]--  7#a7 ,9 g5]al ,! t]m applicable
 taxpay] means any applicable entity    
:i*-- 7,a7 manages funds pool$ f        
inve/ors1 &  7,b7 is a fiduci>y )       
respect to su* inve/ors4  7#b7          
,applicable entity  7,a7 ,9 g5]al ,! t]m
 applicable entity means--  7i7 any     
p>tn]%ip1  7ii7 any corporation1 or     

7iii7 any real e/ate inve/m5t tru/4     
7,b7 ,exceptions ,! t]m applicable      
entity %all n include--  7i7 an         
organization :i* is describ$ 9 section  
#eja7;c77#c7 & exempt f tax "u section  
#eja7;a71 or  7ii7 an organization :i*  
is prim>ily engag$ 9 ! con/ruction or   
rehabilitation ( s+le-family resid5ces &
 :i* (f]s su* resid5ces = sale 9 !      
ord9>y c\rse ( bus9ess4  7b7 ,h$ge fund 
taxpay] ,= purposes ( ?is section1 ! t]m
 h$ge fund taxpay] means1 ) respect to  
any taxable ye>1 any applicable taxpay] 
:i* has #ej1jjj1jjj or m 9 net value or 
assets "u managem5t on any day dur+ !   
taxable ye>4  7c7 ,s+le-,family resid5ce
 ,= purposes ( ?is *apt]--  7#a7 ,9     
g5]al ,! t]m s+le-family resid5ce means 
a resid5tial prop]ty consi/+ ( #a- to #d
 dwell+ units4  7#b7 ,exceptions ,a     
resid5tial prop]ty %all n be treat$ z a 
resid5tial prop]ty describ$ 9 clause 7i7
 if--  7,a7 su* prop]ty is unoccupi$ &  
acquir$ ?r\gh =eclosure 7o!r ?an su* a  
resid5ce acquir$ ?r\gh =eclosure by a   

h$ge fund taxpay]1 z def9$ 9 section    
#ejjj;,f7d77#c771  7,b7 su* prop]ty is--
  7i7 n r5t$ or leas$1 &  7ii7 us$ z !  
pr9cipal resid5ce 7)9 ! mean+ ( section 
#aba7 ( any p]son :o has an own]%ip     
int]e/ 9 ! applicable taxpay]1 or  7,c7 
su* prop]ty-- 7i7 0 a build+ ) respect  
to :i* a cr$it 0 all[$ "u section #db   
7relat+ to ! l[-income h\s+ cr$it71 &   
7ii7 is n own$ by a h$ge fund taxpay] 7z
 def9$ 9 section #ejjj;,f7d77#c774  7d7 
,acquisition2 own]%ip ,= purposes ( ?is 
*apt]1 an applicable taxpay] %all be    
treat$--  7#a7 z acquir+ a s+le-family  
resid5ce if ! applicable taxpay]        
acquires a majority own]%ip int]e/ 9 !  
s+le-family resid5ce1 reg>dless ( !     
p]c5tage ( t own]%ip int]e/1 &  7#b7 z  
own+ a s+le-family resid5ce if !        
applicable taxpay] owns a majority      
own]%ip int]e/ 9 ! s+le-family resid5ce1
 reg>dless ( ! p]c5tage ( t own]%ip     
int]e/4  7e7 ,aggregation rules  7#a7 ,9
 g5]al ,= purposes ( ?is *apt]1 all     
p]sons :i* are treat$ z a s+le employ]  

"u subsections 7a7 & 7b7 ( section #eb  
%all be treat$ z a s+le p]son4  7#b7    
,modifications ,= purposes ( ?is        
subsection--  7,a7 section #eb7;a7 %all 
be appli$ by sub/itut+ compon5t memb]s =
 memb]s1 &  7,b7 = purposes ( apply+    
section #eb7;b71 ! t]m trade or bus9ess 
%all include any activity treat$ z a    
trade or bus9ess "u p>agraph 7#e7 or    
7#f7 ( section #dfi7;c7 7det]m9$ )\t    
reg>d to ! phrase ,to ! ext5t provid$ 9 
regulations 9 su* p>agraph 7#f774  7#c7 
,compon5t memb] ,= purposes ( ?is       
p>agraph1 ! t]m compon5t memb] has !    
mean+ giv5 su* t]m by section #aefc7;b71
 except t ! det]m9ation %all be made )\t
 reg>d to section #aefc7;b77#b74  4  7b7
 ,cl]ical am5dm5t ,! table ( *apt]s =   
subtitle ,d ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by add+ at ! end !      
foll[+ new item3  ,*apt] #ej;,b--,excess
 s+le-family resid5ces  4  7c7          
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ! date ( enactm5t ( ?is     

,act4  #c4 ,disall[ance ( mortgage      
int]e/ & depreciation 9 connection )    
s+le-family resid5ces own$ by cov]$     
taxpay]s  7a7 ,mortgage int]e/  7#a7 ,9 
g5]al ,section #afc ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$ by r$esignat+   
subsection 7n7 z subsection 7o7 & by    
ins]t+ aft] subsection 7m7 ! foll[+ new 
subsection3  7n7 ,c]ta9 int]e/ paid by  
cov]$ taxpay]s  7#a7 ,9 g5]al ,no       
d$uction %all be all[$ "u ?is *apt] = a 
taxable ye> ) respect to int]e/ paid or 
accru$ on acquisition indebt$ness )     
respect to any s+le-family resid5ce if !
 own] ( su* s+le-family resid5ce is     
liable = tax "u *apt] #ej;,b = su*      
taxable ye>4  7#b7 ,def9itions ,=       
purposes ( ?is subsection--  7,a7       
,acquisition indebt$ness ,! t]m         
acquisition indebt$ness has ! mean+ giv5
 su* t]m "u subsection 7h77#c77;,b71    
det]m9$-- 7i7 by sub/itut+ s+le-family  
resid5ce 7z def9$ 9 section #ejjj;,g7b77
 = qualifi$ resid5ce1 &  7ii7 )\t reg>d 
to clause 7ii7 !re(4  7,b7 ,s+le-family 

resid5ce ,! t]m s+le-family resid5ce has
 ! mean+ giv5 su* t]m "u section        
#ejjj;,g7b74  7,c7 ,own]%ip ,! rules (  
section #ejjj;,g7c7 %all apply =        
purposes ( det]m9+ own]%ip4  4  7#b7    
,effective date ,! am5dm5ts made by ?is 
subsection %all apply to taxable ye>s   
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  7b7 ,depreciation  7#a7 ,9 g5]al 
,section #afg ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by r$esignat+         
subsection 7i7 z subsection 7j7 & by    
ins]t+ aft] subsection 7h7 ! foll[+ new 
subsection3  7i7 ,d$uction disall[$ =   
disqualifi$ s+le family prop]ty own]s   
7#a7 ,9 g5]al ,no d$uction %all be all[$
 "u ?is section = a taxable ye> )       
respect to a s+le-family resid5ce if !  
own] ( su* s+le-family resid5ce is      
liable = tax "u *apt] #ej;,b = su*      
taxable ye>4  7#b7 ,def9itions ,=       
purposes ( ?is subsection-- 7,a7        
,s+le-family resid5ce ,! t]m s+le-family
 resid5ce has ! mean+ giv5 su* t]m "u   
section #ejjj;,g7b74  7,b7 ,own]%ip ,!  

rules ( section #ejjj;,g7c7 %all apply =
 purposes ( det]m9+ own]%ip4  4  7#b7   
,effective date ,! am5dm5ts made by ?is 
subsection %all apply to taxable ye>s   
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4