Time to Heal Act

HR7349, titled the 'Time to Heal Act,' was introduced in the House of Representatives on February 4, 2026, and subsequently referred to the House Committee on Ways and Means. The bill aims to amend the Internal Revenue Code of 1986, specifically Section 121(b)(4), to allow individuals with deceased spouses the same $500,000 exclusion of gain from the sale of a principal residence as is currently allowed to married couples. This exclusion would apply regardless of the time elapsed since the spouse's death, provided the individual has not remarried. This legislation does not involve direct funding or appropriations. Instead, it proposes a change to the tax code, which would result in tax relief for a specific demographic. The mechanism is a tax exclusion, meaning qualifying individuals would pay less in capital gains tax on the sale of their primary residence. This could increase the disposable income of surviving spouses who sell their homes. Structural beneficiaries of this bill, if enacted, would primarily be surviving spouses who own and sell their homes. The Real Estate sector could see a marginal increase in housing supply from this demographic, as the increased exclusion might incentivize sales. Financial institutions involved in mortgage lending or wealth management for this demographic could also see indirect effects. There are no specific companies or tickers directly impacted by this tax code change, as it affects individual taxpayers rather than corporate entities directly. As of April 7, 2026, the bill is in its very early stages, having only been introduced and referred to a committee. The next legislative steps would involve committee consideration, potential markups, and a vote in the House, followed by a similar process in the Senate before it could be sent to the President.