Bill > HR2760

This bill aims to modify the tax code by increasing the income threshold for the mortgage insurance premium (MIP) deduction and making this tax benefit permanent. Specifically, the bill raises the income cap from $100,000 to $200,000 for single filers (and from $50,000 to $100,000 for married individuals filing separately), which will allow more middle-class homeowners to deduct the cost of mortgage insurance from their taxes. Currently, this deduction was set to expire, but this legislation would remove the sunset provision, making the tax benefit a permanent part of the tax code. The changes would take effect for tax years beginning after December 31, 2025, meaning taxpayers would first be able to use the increased income limits and permanent deduction when filing their 2026 tax returns. Mortgage insurance is typically required by lenders when homebuyers make a down payment of less than 20%, and this bill seeks to provide financial relief to homeowners by making the associated insurance premiums more tax-deductible.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2760/all-info