To amend the Internal Revenue Code of 1986 to temporarily increase the capital gains exclusion for any qualifying senior who sells a principal residence during a qualifying year, and for other purposes.

119th Congress Introduced by Mike Lawler and 1 co-sponsor

HR 9064 temporarily increases the capital gains exclusion for seniors selling a long-owned principal residence (age 65+, 25-year ownership) to higher thresholds for 2027–2030.

Introduced in House

Summary of HR 9064 (119th Congress)

Purpose

HR 9064 seeks to temporarily increase the capital gains exclusion for seniors who sell their principal residence. The bill would widen eligibility thresholds for 2027 through 2030, allowing qualifying seniors to exclude a larger portion of capital gains from the sale of a primary residence when meeting certain age and ownership requirements.

Key provisions

Limited-time expansion window: Applies to sales or exchanges of a qualifying residence occurring after December 31, 2026 and before January 1, 2031.

Enhanced exclusion amounts (for single filers):

If the seller is a qualifying senior and not married on the date of sale: the exclusion basis increases from $250,000 to $1,000,000.

Enhanced exclusion amounts (for married couples filing jointly):

If either spouse is a qualifying senior: the per-spouse exclusion amount increases from $500,000 to $1,000,000 for each applicable provision, with the overall framework applying the higher threshold to the appropriate parts of the law (effectively raising the joint exclusion when at least one spouse is a qualifying senior).

Enhanced exclusion amounts (for married individuals filing separately):

If a qualifying senior is married and files separately: the exclusion increases from $250,000 to $500,000 for the applicable provision.

Qualifying senior definition: An individual who is at least 65 years old on the date of sale or exchange.

Qualifying residence definition: A principal residence owned for at least 25 years by the taxpayer (or, in the case of joint filers, by either spouse).

Effective date: The changes would apply to taxable years beginning after December 31, 2026.

Who would be affected

Target group: Seniors age 65+ who sell or exchange their principal residence within the 2027–2030 window.

Residences affected: Principal (qualifying) residences held for at least 25 years.

Filing status considerations:

Single seniors: higher exclusion threshold ($1,000,000).
Married couples: higher threshold if either spouse is a qualifying senior; separate returns for a qualifying senior married filer would use the adjusted threshold.
Married filing jointly with at least one qualifying senior: higher combined exclusion thresholds apply according to the bill’s special rules.

Procedural and timeline aspects

Introduction and referral: Introduced May 29, 2026 by Rep. Marie Malliotakis; referred to the House Committee on Ways and Means.

Temporary nature: The bill explicitly limits its effect to tax years 2027 through 2030, after which current law would resume unless further action is taken.

No funding changes noted: The text provided does not include any accompanying revenue offsets or fiscal estimates; the primary focus is on changing the exclusion amount.

Potential impact considerations

Tax planning implications: The bill reduces capital gains tax exposure for qualifying seniors selling a long-owned primary residence, potentially encouraging sales within the window.

Housing market effects: Could influence the timing of principal residence sales among older homeowners.

Administrative considerations: Taxpayers would need to determine senior status, ownership duration, and residency status consistent with the expanded thresholds; IRS guidance would likely be issued if enacted.

If you’d like, I can compare this proposal to current law (Section 121 exclusion) and prepare a side-by-side table of the differences.