Mortgage Insurance Tax Deduction Act of 2025
The Mortgage Insurance Tax Deduction Act of 2025 would make permanent the federal tax deduction for mortgage insurance premiums. By striking a specific provision (clause (iv)) in the Internal Revenue Code, the bill removes the sunset that previously limited or phased out this deduction, ensuring it continues indefinitely. The change would apply to amounts paid or accrued after December 31, 2024. The bill is titled accordingly and was introduced in the House by Representative Brownley on February 4, 2025 and referred to the Ways and Means Committee. If enacted, taxpayers who pay mortgage insurance premiums (PMI or related government‑backed mortgage insurance) would continue to be able to deduct those premiums on their federal income tax returns, subject to existing law’s general rules for mortgage insurance deductions.
Key Points
- 1Permanently extend the deduction for mortgage insurance premiums by removing clause (iv) from IRC 163(h)(3)(E).
- 2Applies to amounts paid or accrued after December 31, 2024 (i.e., tax years 2025 and onward).
- 3The measure is titled the “Mortgage Insurance Tax Deduction Act of 2025.”
- 4Introduced in the House by Rep. Brownley on February 4, 2025; referred to the Committee on Ways and Means.
- 5Does not add new eligibility rules or expand the deduction beyond making it permanent; it preserves the existing deduction framework while removing the sunset.