Mortgage Debt Tax Forgiveness Act of 2025
Introduced Feb 4, 2025 by Rep. Julia Brownley
It's waiting on a committee vote to reach the full chamber. Most bills never leave this stage.
This bill makes permanent the exclusion of the discharge of qualified principal residence indebtedness from gross income for federal tax purposes.
Under current law, a taxpayer may generally exclude from gross income up to $750,000 (or $375,000 if married but filing a separate federal tax return) from the discharge of indebtedness that is (1) incurred to purchase, build, or substantially improve a principal residence (or refinance such indebtedness); and (2) secured by the principal residence. The discharge must currently occur before January 1, 2026, and some limitations apply.
Summary by the Congressional Research Service.
No floor votes yet — it hasn't reached the floor of either chamber.