Massachusetts legislation · 194th General Court
Massachusetts S2039: An Act relative to the relief of mortgage debt
Status: Failed, July 23, 2026
What the bill says
From the introduced text, February 27, 2025:
SECTION 1. Section 2 of chapter 62 of the General Laws, as appearing in the 2022 Official Edition, is hereby amended by inserting after the word “lender” in line 213 the following subparagraph:- (S) To the extent not otherwise excluded from gross income, in whole or in part, income attributable to the discharge of debt on a principal residence, including debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, subject to the following conditions and limitations: (i) No more than $2,000,000 of forgiven debt is eligible for the exclusion under this section, or $1,000,000 in the case of married filing separately for the purposes of federal taxes. (ii) This section shall only apply to “acquisition indebtedness” as defined in section 163(h)(3)(B) of the Code. (iii) The amount excluded from gross income by reason of this section shall be applied to reduce, but not below zero, the Massachusetts basis of the principal residence of the taxpayer. (iv) This section shall not apply to the discharge of a loan if the discharge is on account of services performed for the lender or any other factor not directly related to a decline in the value of the residence or to the financial condition of the taxpayer. (v) If any loan is discharged, in whole or in …
Sponsors
- Mark Montigny (D, Second Bristol and Plymouth) · primary sponsor
Latest actions
- : Accompanied a study order, see H5596
- : Read third (title changed) and passed to be engrossed
- : Taken out of the Orders of the Day
- : Read, rules suspended, read second and ordered to a third reading
- : Reporting date extended to Thursday June 25, 2026
- : Read third and passed to be engrossed
- : Read second and ordered to a third reading
- : Rules suspended
- : Hearing scheduled for 09/15/2025 from 01:00 PM-05:00 PM in A-2
- : House concurred
Common questions
- What is S2039?
- S2039 is a bill in the Massachusetts Legislature (194th General Court): An Act relative to the relief of mortgage debt.
- What is the status of S2039?
- Failed as of July 23, 2026. Latest action: Accompanied a study order, see H5596 (July 23, 2026).
- Who sponsored S2039?
- Mark Montigny (D, Second Bristol and Plymouth).
- Where is the official record for S2039?
- On the Massachusetts Legislature website: https://malegislature.gov/Bills/194/S2039
Source: official Massachusetts record. Tracked by Delilah, AI for legislation across all 50 states and Congress.