Congress expands homeowner tax break, excludes renters and lower-income families
H.R. 2760 — Middle Class Mortgage Insurance Premium Act of 2025 · Filed by Vern Buchanan (R-FL) · 12 cosponsors · Introduced Apr 9, 2025 · Referred to committee
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What it does
This bill doubles the income threshold at which homeowners lose the ability to deduct mortgage insurance premiums from their federal taxes—from $100,000 to $200,000 for single filers (and $50,000 to $100,000 for married filing separately)—and makes that deduction permanent instead of allowing it to expire. Homeowners earning up to the new cap can deduct the cost of private mortgage insurance, reducing their taxable income and federal tax liability.
Why we flagged it
The bill's sole operative mechanism is a tax deduction expansion and permanence—it increases the income threshold for a specific homeowner tax break and removes its sunset date. This is a straightforward tax-code amendment with no regulatory, appropriations, or policy-implementation component.
What the text implies
- The permanent extension removes future legislative leverage to revisit or condition the deduction—once made permanent, it becomes a structural part of the tax code and is harder to modify or sunset.
- The income-cap increase ($100k→$200k single) may disproportionately benefit higher-income homeowners in high-cost-of-living areas, as lower-income homeowners are less likely to carry PMI or to benefit from the higher threshold.
The full analysis lists 3 implications of this text.
Who stands to gain
homeowners with mortgages and private mortgage insurance in the $100k–$200k income band; mortgage insurance companies (PMI providers) may see reduced pressure to lower premiums if homeowner