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Congress·In Committee·H.R. 917

Mortgage Debt Tax Forgiveness Act of 2025

Rep. Brownley Proposes Making Mortgage Debt Tax Forgiveness Permanent for Homeowners

about 1 year ago·View on Congress.gov·Read full text

This bill was recently introduced and is currently being reviewed by the House Committee on Ways and Means. It is in the early stages of the lawmaking process and is considered active. There are no upcoming votes scheduled at this time.

Passage Likelihood

40%Possible

While this tax relief is generally popular and has been extended many times before, it is currently in the early stages of the committee process.

  • ·Sponsor is in the minority party
  • ·History of bipartisan support for this tax break
  • ·Currently in House Ways and Means Committee

Legislative Progress

House
Senate
President
Law

Key Points

  • This bill would permanently exclude forgiven mortgage debt on a primary residence from being counted as taxable income. Normally, when a lender forgives debt, the IRS treats it as income and the homeowner owes taxes on it.

    From policy text

    “To amend the Internal Revenue Code of 1986 to make permanent the exclusion from gross income of discharge of qualified principal residence indebtedness.”
    View in full text
  • The tax exclusion applies only to a person's main home, not investment properties or vacation homes. It protects people going through foreclosure, short sales, or loan modifications where the bank reduces what they owe.

    From policy text

    “exclusion from gross income of discharge of qualified principal residence indebtedness”
    View in full text
  • The change would take effect for mortgage debt discharged after December 31, 2025, making this a permanent part of the tax code rather than a temporary measure that Congress has had to renew repeatedly.

    From policy text

    “The amendment made by this section shall apply to indebtedness discharged after December 31, 2025.”
    View in full text
  • The bill works by amending Section 108(a)(1)(E) of the Internal Revenue Code, removing the expiration date language that currently limits when this exclusion applies.

    From policy text

    “Section 108(a)(1)(E) of the Internal Revenue Code of 1986 is amended by striking ``which is discharged'' and all that follows and inserting a period.”
    View in full text
TaxesHousing

Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Feb 4, 2025House

Referred to the House Committee on Ways and Means.

Feb 4, 2025

Introduced in House

The bill was officially filed and given a number. It now enters the legislative queue.

Source Information

Document Type

Congressional Bill

Official Title

Mortgage Debt Tax Forgiveness Act of 2025

Bill NumberHR 917
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.
Read Full Bill Text

Sponsor

Analysis generated by AI. Always verify with official sources.