Extension and Modification of Limitation on Deduction for Qualified Residence Interest
Section 70108 · Sec. 70108 ·
What this chapter is about
This part takes the end date off a limit on home loan interest deductions. It adds a rule about mortgage insurance premiums. It also strikes one clause and renumbers others. The changes start with tax years after December 31, 2025.
“Mortgage insurance premiums treated as interest.--Clause (iv) of subparagraph (E) shall not apply.”
The section strikes the words and before January 1, 2026 from clause (i) of section 163(h)(3)(F) of the Internal Revenue Code of 1986, redesignates two subclauses and fixes the cross reference that followed, and inserts a new subclause providing that clause (iv) of subparagraph (E) does not apply to mortgage insurance premiums treated as interest. It also strikes clause (ii), redesignates clauses (iii) and (iv) as (ii) and (iii), and replaces 2018 Through 2025 in the heading with Beginning After 2017.
What the document actually says
“Mortgage insurance premiums treated as interest.--Clause (iv) of subparagraph (E) shall not apply.”
That sentence, in plain words
A new rule is added on mortgage insurance premiums. It says one clause of an older rule does not apply to them.
What this is about
The section also takes an end date out of the same rule. The heading is reworded to match. So the limit carries on with no end year.
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The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 70108 in the PDF
What the document says
“The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
The section applies its amendments to taxable years beginning after December 31, 2025.
What the document actually says
“The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
That sentence, in plain words
The changes start with tax years that begin after December 31, 2025.
What this is about
Earlier tax years are not touched. The old rules still hold for them. The date is fixed in the law.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Both things the section does: the changes to the limitation on qualified residence interest, including the new rule on mortgage insurance premiums, and the effective date.
The redesignations and the cross reference change that follows them, which move existing text without changing what it requires.
The section works by amending section 163(h)(3)(F) of the Internal Revenue Code of 1986, which is not indexed here, so what the limitation is and how it is worked out cannot be checked against anything on this site.
