WASHINGTON—The Senate Finance Committee is being asked to make current mortgage insurance premium tax deductions permanent.
NAFCU, along with several other financial services trade organizations, made the request in a letter to the Committee.
In the letter, the groups also called for the adjusted gross income (AGI) phaseout to be increased from the current threshold of $100,000 for married filings and $50,000 for single or married filing separately.
“The AGI cap has remained the same since the deduction took effect in 2007 and an increase is warranted to account for the natural erosion of the value of the dollar with the passage of time,” wrote the trades.
The groups further told the Senate the temporary nature of the tax deduction coupled with the low AGI phaseout are making it difficult for American families to claim the deduction, especially low- and moderate-income and minority homebuyers who use low down payment mortgages and rely on mortgage insurance to achieve homeownership.
‘Bipartisan Support’
“The tax deduction for mortgage insurance premiums has long enjoyed bipartisan support and, as Congress considers any year-end tax package, our organizations firmly believe this deduction is both good tax policy and housing policy,” the organizations stated.
Additionally, the groups offered support for the Middle Class Mortgage Insurance Premium Act.