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139 STAT. 163 PUBLIC LAW 119–21—JULY 4, 2025 ‘‘(1) ‘calendar year 2017’, in the case of the $109,400 amount in subparagraph (A)(i)(I) and the $70,300 amount in subpara- graph (A)(i)(II), and ‘‘(2) ‘calendar year 2025’, in the case of the $1,000,000 amount in subparagraph (A)(ii)(I).’’. (c) MODIFICATION OF PHASEOUT AMOUNT.—Section 55(d)(4)(A)(ii) is amended by striking ‘‘and’’ at the end of subclause (II), and by adding at the end the following new subclause: ‘‘(IV) by substituting ‘50 percent’ for ‘25 per- cent’, and’’. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70108. EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION FOR QUALIFIED RESIDENCE INTEREST. (a) IN GENERAL.—Section 163(h)(3)(F) is amended— (1) in clause (i)— (A) by striking ‘‘, and before January 1, 2026’’, (B) by redesignating subclauses (III) and (IV) as sub- clauses (IV) and (V), respectively, (C) by striking ‘‘subclause (III)’’ in subclause (V), as so redesignated, and inserting ‘‘subclause (IV)’’, and (D) by inserting after subclause (II) the following new subclause: ‘‘(III) MORTGAGE INSURANCE PREMIUMS TREATED AS INTEREST.—Clause (iv) of subpara- graph (E) shall not apply.’’, (2) by striking clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively, and (3) by striking ‘‘2018 THROUGH 2025’’ in the heading and inserting ‘‘BEGINNING AFTER 2017’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70109. EXTENSION AND MODIFICATION OF LIMITATION ON CAS- UALTY LOSS DEDUCTION. (a) IN GENERAL.—Section 165(h)(5) is amended— (1) in subparagraph (A), by striking ‘‘, and before January 1, 2026’’, and (2) by striking ‘‘2018 THROUGH 2025’’ in the heading and inserting ‘‘BEGINNING AFTER 2017’’. (b) EXTENSION TO STATE DECLARED DISASTERS.— (1) IN GENERAL.—Subparagraph (A) of section 165(h)(5), as amended by subsection (a), is further amended by striking ‘‘(i)(5))’’ and inserting ‘‘(i)(5)) or a State declared disaster’’. (2) EXCEPTION RELATED TO PERSONAL CASUALTY GAINS.— Clause (i) of section 165(h)(5)(B) is amended by striking ‘‘(as so defined)’’ and inserting ‘‘(as so defined) or a State declared disaster’’. (3) STATE DECLARED DISASTER.—Paragraph (5) of section 165(h) is amended by adding at the end the following new subparagraph: ‘‘(C) STATE DECLARED DISASTER.—For purposes of this paragraph— ‘‘(i) IN GENERAL.—The term ‘State declared dis- aster’ means, with respect to any State, any natural catastrophe (including any hurricane, tornado, storm, high water, wind-driven water, tidal wave, tsunami, Definitions. 26 USC 163 note. 26 USC 55 note.