Congress locks in homeowner tax break, making mortgage insurance deduction permanent.
H.R. 918 — Mortgage Insurance Tax Deduction Act of 2025 · Filed by Julia Brownley (D-CA) · Introduced Feb 4, 2025 · Referred to committee
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What it does
This bill makes permanent a tax deduction for mortgage insurance premiums that was previously set to expire. Homeowners who pay mortgage insurance (required when putting down less than 20% on a home purchase) can currently deduct those premiums from their taxable income, but that deduction was scheduled to end. This bill removes the expiration date, allowing the deduction to continue indefinitely. Homeowners with mortgages requiring insurance premiums benefit by keeping this tax break.
Why we flagged it
The bill's sole function is to extend an existing homeowner tax benefit by removing its sunset clause. It is a straightforward tax-code amendment with no secondary mechanisms or riders.
What the text implies
- Permanence removes the periodic legislative pressure to renew the deduction, shifting the burden to opponents to affirmatively repeal it rather than allowing it to lapse.
- The deduction's value is regressive: it benefits higher-income homeowners more (in absolute dollars) because they pay higher mortgage insurance premiums and face higher marginal tax rates.
- Mortgage insurance is typically required for borrowers with <20% equity, so this deduction disproportionately aids first-time and lower-down-payment buyers, but the tax benefit accrues only to those with sufficient income to itemize or claim it.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
Homeowners who pay mortgage insurance retain a tax deduction that reduces their annual tax liability. The deduction is most valuable to middle-income homeowners with smaller down payments, who are more likely to carry mortgage insurance. Permanence eliminates uncertainty and allows taxpayers to plan with confidence.
Who stands to gain
- homeowners with mortgages requiring insurance
- mortgage lenders (indirectly, through increased demand for mortgaged properties)
- mortgage insurance companies (indirectly, through sustained demand)
Named in the bill
Internal Revenue Code of 1986, Section 163(h)(3)(E), homeowners, mortgage insurance companies
Where it stands
- Feb 4, 2025 — Introduced · Congress.gov: “Introduced in House”
- Feb 4, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (374 characters) on Jun 3, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
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