SHARE Act

The SHARE Act introduces a new tax provision that excludes certain income from shared appreciation mortgages from gross income for qualifying borrowers. This bill directly affects low-to-moderate income homeowners who use these alternative financing products, which allow lenders to receive a share of the property's future value increase instead of requiring monthly interest payments. The key mechanism requires borrowers to meet income limits of 140 percent of the area median income and use the home as their primary residence, while the mortgage must be a second lien subordinate to a qualified first mortgage and cannot exceed 49 percent of the purchase price. The tax exclusion applies only to amounts received after December 31, 2025, and does not change the fundamental structure of these loans but rather provides specific tax treatment for their repayment and disposition.