By Mr. Tisei, a petition (accompanied by bill, Senate,
No. 1830) of Richard R. Tisei, Bruce E. Tarr, Michael R.
Knapik, Robert L. Hedlund and other members of the General
Court for legislation to create a private mortgate
insurance tax deduction. Revenue.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Paragraph (a) of Part B of section 3 of chapter 62 of the General Laws, as appearing in the 2004 official edition, is hereby amended by inserting after subparagraph (15) the following new subparagraph:-
(16) (a) An amount equal to premiums paid or accrued for qualified mortgage insurance by the taxpayer during the taxable year in connection with acquisition indebtedness with respect to a primary residence.
(b) The amount under clause (a) shall be reduced (but not below zero) by 10 percent of such amount for each $1,000 that a persons adjusted gross income for the taxable year exceeds $100,000.
(c) Clause (a) shall not apply with respect to any mortgage insurance contracts issued before January 1, 2007.
Section 2. Section 1 of chapter 62 of the General Laws, as so appearing, is hereby amended by inserting after paragraph (o) the following new paragraph:-
(p) “Qualified mortgage insurance,” shall mean private mortgage insurance, as defined within 12 U.S.C. 4901, or commonly referred to as insurance that reimburses a mortgage lender if the buyer defaults on the loan and the foreclosure sale price is less than the amount owed the lender.