This bill, known as the "SHARE Act," proposes to amend the Internal Revenue Code of 1986 by creating a new section to exclude certain proceeds from shared appreciation mortgage contracts from a lender's gross income. Specifically, the amount received by a lender that exceeds the original principal obligation of such a mortgage would not be taxed. This exclusion applies if the borrower's income did not exceed 140 percent of the area median income for the census tract and the property served as their principal residence . The legislation also extends this exclusion to any gain from the disposition of capital assets composed of or secured by these qualifying mortgages. A shared appreciation mortgage is defined as a second lien on a residential property where the lender shares in a predetermined percentage of the property's net appreciated value. Key requirements for these mortgages include: The amount does not exceed 49 percent of the purchase price . It is subordinate to a qualified first lien mortgage . Repayment is not required before specific events such as the first lien's maturity or the sale of the property. These amendments are set to apply to amounts received after December 31, 2025.