Make American Housing Affordable (MAHA) Act of 2026
Summary
The Make American Housing Affordable (MAHA) Act of 2026 proposes a tax credit of $5,000 (or $10,000 for joint returns) for eligible individuals purchasing a principal residence. This credit is designed to assist first-time homebuyers and those who haven't received such a credit in the past four years. The credit phases out for individuals with modified adjusted gross income exceeding $250,000 (or $500,000 for joint returns).
Expected Effects
The MAHA Act aims to stimulate homeownership by reducing the initial financial burden. This could lead to increased demand in the housing market. The phase-out provision targets the credit towards lower and middle-income individuals.
Potential Benefits
- Increased homeownership rates, especially among eligible individuals.
- Stimulation of the housing market and related industries.
- Financial relief for first-time homebuyers.
- Targeted assistance for those who haven't recently benefited from similar credits.
- Potential boost to local economies through increased property tax revenue (in the long term).
Potential Disadvantages
- Potential inflationary pressure on housing prices due to increased demand.
- The phase-out may reduce the credit's effectiveness for some middle-income individuals.
- Increased government spending and potential budget deficits.
- Complexity in tax code due to the new credit and its phase-out mechanism.
- The credit is a one-time benefit and does not address long-term affordability issues.
Constitutional Alignment
The MAHA Act aligns with the Constitution's general welfare clause (Preamble). Congress has the power to tax and spend for the general welfare, and this act uses that power to encourage homeownership. Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).