H.R. 3906

Middle Class Tax Relief Act of 2007

Latest

I

110th CONGRESS

1st Session

H. R. 3906

IN THE HOUSE OF REPRESENTATIVES

October 18, 2007

Mr. Murphy of Connecticut introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to make permanent the deduction for State and local sales tax, the deduction for qualified tuition and related expenses, the deduction for mortgage interest premiums, and the modifications to the dependent care credit.

1.

Short title

This Act may be cited as the Middle Class Tax Relief Act of 2007.

2.

State and local sales tax deduction made permanent

(a)

In general

Subparagraph (I) of section 164(b)(5) of the Internal Revenue Code of 1986 is amended by striking , and before January 1, 2008.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2007.

3.

Mortgage insurance premiums treated as interest made permanent

(a)

In general

Subparagraph (E) of section 163(h)(3) of the Internal Revenue Code of 1986 is amended by striking clause (iv).

(b)

Effective date

The amendment made by this section shall apply to amounts paid or accrued after December 31, 2007.

4.

Deduction for qualified tuition and related expenses made permanent

(a)

In general

(1)

Termination

Section 222 of the Internal Revenue Code of 1986 is amended by striking subsection (e).

(2)

EGTRRA sunset

Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset provisions of such Act) shall not apply to section 431 of such Act.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2007.

5.

Modifications to dependent care credit made permanent

Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset provisions of such Act) shall not apply to section 204 of such Act.