CONGRESS FOR VOTERS

DemocratBill · H.R. 917· House(119-HR-917)

Mortgage Debt Tax Forgiveness Act of 2025

Rep. Brownley
Age: 74 years
California
Introduced
2/4/2025
Last activity
2/4/2025 — Referred to the House Committee on Ways and Means.
Sponsored by
Julia Brownley
Cosponsors
None
Taxation
  1. Introduced
  2. In Committee

What this bill would do

This bill, known as the "Mortgage Debt Tax Forgiveness Act of 2025," aims to change the Internal Revenue Code of 1986. It seeks to make the exclusion from gross income for the discharge of qualified principal residence indebtedness permanent. This change would apply to any such indebtedness discharged after December 31, 2025. The legislation was introduced by Ms. Brownley and referred to the Committee on Ways and Means.

Yes· 3 of 6

  • Would middle-income households be better off under this?+5

    The bill helps middle-class homeowners by ensuring discharged mortgage debt is not treated as taxable income.

  • Does this cut taxes for middle-income families?+5

    The bill provides a permanent tax exclusion for the discharge of qualified principal residence indebtedness, which benefits homeowners.

  • Would people in middle age be better off under this?+4

    Middle-aged homeowners are likely to benefit from the permanent exclusion of discharged mortgage debt from their taxable income.

The opposite

  • Does this reduce what the federal government spends?-2

    Making the debt exclusion permanent prevents the government from collecting tax revenue on discharged mortgage debt.