This legislation aims to make permanent a significant tax exclusion related to mortgage debt. Currently, the discharge of qualified principal residence indebtedness can be excluded from gross income, but this provision has typically been temporary. The bill seeks to remove the expiration date, providing long-term tax relief for homeowners whose mortgage debt is forgiven. Specifically, the bill amends Section 108(a)(1)(E) of the Internal Revenue Code of 1986 to eliminate the sunset clause for this exclusion. This means that individuals will no longer have to pay income tax on the amount of qualified principal residence debt that is forgiven, with the amendment applying to any indebtedness discharged on or after December 31, 2025 .