Statement: Mortgage Insurance Tax Deductibility’s Inclusion in Senate Reconciliation Bill
WASHINGTON—Seth Appleton, President of U.S. Mortgage Insurers (USMI), released the following statement following the inclusion of language in the Senate Finance Committee’s reconciliation bill by Chairman Mike Crapo (R-ID) and Senator Thom Tillis (R-NC) that would reinstate and make permanent the deductibility of mortgage insurance (MI) premiums:
“Renewing and making permanent the MI premium deduction would deliver meaningful tax relief directly to working class Americans and make homeownership more affordable without increasing risk in the housing finance system. From 2007 until its expiration after tax year 2021, the MI premium deduction was claimed 44 million times, representing a combined $65 billion in deductions for hardworking Americans with an average annual deduction of $1,454 per qualified taxpayer. We applaud the Senate Finance Committee’s reconciliation bill for renewing and making permanent this smart, targeted tax deduction that would help low down payment homeowners keep more of their tax dollars.
“The mortgage insurance premium tax deduction has historically enjoyed support from lawmakers in the House and Senate, and a broad coalition of industry groups, housing advocates, and civil rights organizations. We commend Chairman Crapo and Senator Tillis for standing up for hard working homeowners, homebuyers, and taxpayers by including the mortgage insurance premium deduction in the Senate Finance Committee’s reconciliation bill.”
Earlier this year, Representatives Vern Buchanan (R-FL) and Jimmy Panetta (D-CA) re-introduced the Middle Class Mortgage Insurance Premium Act to renew and make permanent the MI premium deduction, and in the 118th Congress, Senators Maggie Hassan (D-NH) and Tillis (R-NC) introduced the Senate version of this important legislation.
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U.S. Mortgage Insurers (USMI) is dedicated to a housing finance system backed by private capital that enables access to housing finance for borrowers while protecting taxpayers. Mortgage insurance offers an effective way to make mortgage credit available to more people. USMI is ready to help build the future of homeownership. Learn more at www.usmi.org and www.usmi.org/policy_priorities/mi-deductibility/.
