Bill > S1581

This bill proposes to create a tax deduction for private mortgage insurance premiums paid by homeowners. Specifically, it amends Massachusetts General Laws to allow taxpayers to deduct premiums paid for "qualified mortgage insurance" on their primary residence. Qualified mortgage insurance is defined as private mortgage insurance, which is insurance that protects mortgage lenders if a borrower defaults on their loan and the sale of the foreclosed property doesn't cover the outstanding loan amount. However, this deduction is phased out for individuals with adjusted gross incomes exceeding $100,000, with the deductible amount reduced by 10% for every $1,000 over that threshold. Additionally, the deduction will only apply to mortgage insurance contracts issued after January 1, 2007.