Rep. Brownley Proposes Making Mortgage Debt Tax Forgiveness Permanent for Homeowners
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.
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.
This bill’s path across every version that has carried it.
Reintroduced
Reintroduced from H.R. 3890 (118th), which died when its Congress ended.
H.R. 3890 (118th) →Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
Homeowners who face foreclosure, short sales, or loan modifications would no longer have to pay income taxes on the portion of mortgage debt their lender forgives. This prevents a painful double hit where someone losing their home or struggling to keep it also gets a surprise tax bill from the IRS, potentially saving affected homeowners thousands of dollars.
“To amend the Internal Revenue Code of 1986 to make permanent the exclusion from gross income of discharge of qualified principal residence indebtedness.”
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
No votes, news coverage, or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Mortgage Debt Tax Forgiveness Act of 2025
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