Senate reconciliation proposals would help, hurt housing

Provisions restoring the mortgage insurance premium deduction are included in the Senate reconciliation bill, the latest path for its supporters to bring it back to the Tax Code.

It is one of several real estate and housing provisions up for debate, including one that addresses low income housing tax credits.

The MI deduction first was approved for the 2007 tax year, after kicking around Congress for several sessions prior. However, the deduction was never made permanent and renewal over the next decade-plus was not a certainty.

After the 2021 tax year, the deduction expired.

Attempts to revive the MI deduction

Several bipartisan attempts have been made since then to bring it back, but have failed to get off the ground. The latest is H.R. 2760, from Rep. Vern Buchanan, R-Fla. This bill, the…