H.R.2760 - Middle Class Mortgage Insurance Premium Act of 2025 (119th Congress)
Summary
H.R.2760, the Middle Class Mortgage Insurance Premium Act of 2025, aims to amend the Internal Revenue Code of 1986. The bill proposes increasing the income cap for the mortgage insurance premium deduction and making the deduction permanent. This would be achieved by modifying Section 163(h)(3)(E) of the Internal Revenue Code.
Expected Effects
If enacted, the bill would allow more middle-class homeowners to deduct mortgage insurance premiums from their taxes. The increase in the income cap from $100,000 to $200,000 ($50,000 to $100,000 for married filing separately) would expand eligibility. Making the deduction permanent would provide long-term financial predictability for homeowners.
Potential Benefits
- Increased tax savings for middle-class homeowners paying mortgage insurance premiums.
- Greater accessibility to homeownership due to reduced tax burden.
- Long-term financial predictability for homeowners regarding tax deductions.
- Potential stimulus to the housing market as homeownership becomes more affordable.
- Simplification of tax planning for eligible homeowners.
Potential Disadvantages
- Potential increase in the national debt due to increased tax deductions.
- Complexity in administering the increased income cap and permanent deduction.
- Possible inflationary pressure on the housing market if demand increases significantly.
- Benefits disproportionately accrue to homeowners, potentially exacerbating wealth inequality.
- May incentivize riskier lending practices if mortgage insurance becomes more attractive due to tax benefits.
Most Disadvantaged Areas:
Constitutional Alignment
The bill falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1 of the Constitution. The bill does not appear to infringe upon any specific constitutional rights or limitations. The power to amend the Internal Revenue Code is a well-established legislative function.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).