H.R. 9438 – American Property Act

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Updated February 8, 2026 at 6:37 PM UTC

The American Property Act adds a new subchapter to the Internal Revenue Code that creates a 1% annual tax on residential properties in the United States owned by foreign persons that are not used as homes for most of the year (occupied fewer than 29 days). The tax is based on the higher of the property’s local tax appraisal or its most recent sale price. It applies to taxable years beginning after the law’s enactment and affects foreign owners of single‑family homes or small multi‑unit dwellings.

Key Provisions

Defines “specified under‑utilized residential real property” as a single‑family home or a building with four or fewer residential units that is occupied fewer than 29 days in a taxable year.
Imposes a tax equal to 1% of the property’s estimated value on any foreign person who owns such property for more than half of the taxable year.
“Estimated value” is the greater of the property’s state or local tax appraisal or its most recent sales price.
Applies only to “specified foreign persons,” meaning anyone who is not a U.S. person.
Provides rules for properties bought or sold during the year, using the appraisal at the end of ownership and the sale price if transferred.
Adds the new subchapter to the tax code and sets the effective date for taxable years after enactment.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

December 6, 2022

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HouseIntro Referral

Introduced in House

December 6, 2022

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

December 6, 2022

Bill Text

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Introduced in HouseIssued December 6, 2022

I

117th CONGRESS

2d Session

H. R. 9438

IN THE HOUSE OF REPRESENTATIVES

December 6, 2022

Mr. Jacobs of New York introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to impose a tax on foreign-owned under-utilized residential real property.

1.

Short title

This Act may be cited as the American Property Act.

2.

Tax on foreign-owned under-utilized residential real property

(a)

In general

Chapter 36 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter:

E

Tax on foreign-Owned under-Utilized residential real property

Sec. 4491. Tax on foreign-owned under-utilized residential real property.

4491.

Tax on foreign-owned under-utilized residential real property

(a)

In general

In the case of any specified foreign person which owns any specified under-utilized residential real property for more than one-half of any taxable year, there is hereby imposed a tax equal to 1 percent of the estimated value of such property.

(b)

Specified under-Utilized residential real property

For purposes of this section—

(1)

In general

The term specified under-utilized residential real property means, with respect to any taxable year, any specified residential property located in the United States which is occupied as a dwelling unit for less than 29 days during such taxable year.

(2)

Specified residential property

The term specified residential property means a single-family home or structure consisting of four residential units or less, or a part of a building that is a semi-detached house, rowhouse unit, residential condominium unit or other similar premises that is, or is intended to be, a separate parcel or other division of real property, and includes any land which was conveyed with such home, structure, or building.

(c)

Estimated value

For purposes of this section, the term estimated value means, with respect to property for any taxable year, the greater of—

(1)

the appraised value of such property for purposes of determining State or local property taxes (determined as of the close of such taxable year), or

(2)

the most recent sales price of such property (as so determined).

(d)

Specified foreign person

For purposes of this section, the term specified foreign person means any person other than a United States person.

(e)

Special rules for property acquired or transferred during a taxable year

(1)

Application of occupancy rules

For purposes of subsection (b)(1), specified under-utilized residential real property shall not be treated as occupied as a dwelling unit with respect to any taxpayer for any day during which the taxpayer did not own such property.

(2)

Estimated value

In the case of any specified under-utilized residential real property sold or otherwise transferred by the taxpayer during the taxable year—

(A)

the amount described in subsection (c)(1) shall be determined as of the last day on which the taxpayer owns such property, and

(B)

the amount described in subsection (c)(2) shall be the amount for which such property is so sold or otherwise transferred.

.

(b)

Clerical amendment

The table of subchapters for chapter 36 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

Subchapter E—Tax on foreign-owned under-utilized residential real property

.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.