SEC. 249. SALE OF PROPERTY BY JUDICIAL OFFICERS. 
(a) IN GENERAL.—Section 1043(b) (relating to the 
sale of property to comply with conflict-of-interest require-
ments) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A), by inserting ‘‘, or 
a judicial officer,’’ after ‘‘an officer or employee 
of the executive branch’’; and 
(B) in subparagraph (B), by inserting ‘‘ju-
dicial canon,’’ after ‘‘any statute, regulation, 
rule,’’; 
(2) in paragraph (2)—
(A) in subparagraph (A), by inserting ‘‘ju-
dicial canon,’’ after ‘‘any Federal conflict of in-
terest statute, regulation, rule,’’; and 
(B) in subparagraph (B), by inserting 
after ‘‘the Director of the Office of Government 
Ethics,’’ the following: ‘‘in the case of executive 
branch officers or employees, or by the Judicial 
Conference of the United States (or its des-
ignee), in the case of judicial officers,’’; and 
(3) in paragraph (5)(B), by inserting ‘‘judicial 
canon,’’ after ‘‘any statute, regulation, rule,’’. 
(b) JUDICIAL OFFICER DEFINED.—Section 1043(b) 
is amended by adding at the end the following new para-
graph:
‘‘(6) JUDICIAL
OFFICER.—The term ‘judicial 
officer’ means the Chief Justice of the United 
States, the Associate Justices of the Supreme Court, 
and the judges of the United States courts of ap-
peals, United States district courts, including the 
district courts in Guam, the Northern Mariana Is-
lands, and the Virgin Islands, Court of Appeals for 
the Federal Circuit, Court of International Trade, 
Tax Court, Court of Federal Claims, Court of Ap-
peals for Veterans Claims, United States Court of 
Appeals for the Armed Forces, and any court cre-
ated by Act of Congress, the judges of which are en-
titled to hold office during good behavior.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales after the date of enactment 
of this Act. 
SEC. 250. PREMIUMS FOR MORTGAGE INSURANCE. 
(a) IN GENERAL.—Section 163(h)(3) (relating to 
qualified residence interest) is amended by adding at the 
end the following new subparagraph: 
‘‘(E) MORTGAGE
INSURANCE
PREMIUMS 
TREATED AS INTEREST.—
‘‘(i) IN GENERAL.—Premiums paid or 
accrued for qualified mortgage insurance 
by a taxpayer during the taxable year in
connection with acquisition indebtedness 
with respect to a qualified residence of the 
taxpayer shall be treated for purposes of 
this section as interest which is qualified 
residence interest. 
‘‘(ii) PHASEOUT.—The amount other-
wise treated as interest under clause (i) 
shall be reduced (but not below zero) by 10 
percent of such amount for each $1,000 
($500 in the case of a married individual 
filing a separate return) (or fraction there-
of) that the taxpayer’s adjusted gross in-
come 
for 
the 
taxable 
year 
exceeds 
$100,000 ($50,000 in the case of a mar-
ried individual filing a separate return). 
‘‘(iii) LIMITATION.—Clause (i) shall 
not apply with respect to any mortgage in-
surance contracts issued before January 1, 
2007. 
‘‘(iv) TERMINATION.—Clause (i) shall 
not apply to amounts—
‘‘(I) paid or accrued after De-
cember 31, 2007, or 
‘‘(II) properly allocable to any 
period after such date.’’.
(b) DEFINITION
AND
SPECIAL
RULES.—Section 
163(h)(4) (relating to other definitions and special rules) 
is amended by adding at the end the following new sub-
paragraphs: 
‘‘(E) 
QUALIFIED
MORTGAGE
INSUR-
ANCE.—The term ‘qualified mortgage insur-
ance’ means—
‘‘(i) mortgage insurance provided by 
the Veterans Administration, the Federal 
Housing Administration, or the Rural 
Housing Administration, and 
‘‘(ii) private mortgage insurance (as 
defined by section 2 of the Homeowners 
Protection Act of 1998 (12 U.S.C. 4901), 
as in effect on the date of the enactment 
of this subparagraph). 
‘‘(F) SPECIAL RULES FOR PREPAID QUALI-
FIED
MORTGAGE
INSURANCE.—Any amount 
paid by the taxpayer for qualified mortgage in-
surance that is properly allocable to any mort-
gage the payment of which extends to periods 
that are after the close of the taxable year in 
which such amount is paid shall be chargeable 
to capital account and shall be treated as paid 
in such periods to which so allocated. No deduc-
tion shall be allowed for the unamortized bal-
ance of such account if such mortgage is satis-
fied before the end of its term. The preceding 
sentences shall not apply to amounts paid for 
qualified mortgage insurance provided by the 
Veterans Administration or the Rural Housing 
Administration.’’. 
(c) INFORMATION RETURNS RELATING TO MORT-
GAGE INSURANCE.—Section 6050H (relating to returns 
relating to mortgage interest received in trade or business 
from individuals) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(h) RETURNS RELATING TO MORTGAGE INSURANCE 
PREMIUMS.—
‘‘(1) IN
GENERAL.—The Secretary may pre-
scribe, by regulations, that any person who, in the 
course of a trade or business, receives from any indi-
vidual premiums for mortgage insurance aggregating 
$600 or more for any calendar year, shall make a 
return with respect to each such individual. Such re-
turn shall be in such form, shall be made at such 
time, and shall contain such information as the Sec-
retary may prescribe. 
‘‘(2) STATEMENT TO BE FURNISHED TO INDI-
VIDUALS WITH RESPECT TO WHOM INFORMATION IS
REQUIRED.—Every person required to make a re-
turn under paragraph (1) shall furnish to each indi-
vidual with respect to whom a return is made a writ-
ten statement showing such information as the Sec-
retary may prescribe. Such written statement shall 
be furnished on or before January 31 of the year 
following the calendar year for which the return 
under paragraph (1) was required to be made. 
‘‘(3) SPECIAL
RULES.—For purposes of this 
subsection—
‘‘(A) rules similar to the rules of sub-
section (c) shall apply, and 
‘‘(B) 
the 
term 
‘mortgage 
insurance’ 
means—
‘‘(i) mortgage insurance provided by 
the Veterans Administration, the Federal 
Housing Administration, or the Rural 
Housing Administration, and 
‘‘(ii) private mortgage insurance (as 
defined by section 2 of the Homeowners 
Protection Act of 1998 (12 U.S.C. 4901), 
as in effect on the date of the enactment 
of this subsection).’’.
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or accrued after 
December 31, 2006. 
SEC. 251. MODIFICATION OF REFUNDS FOR KEROSENE 
USED IN AVIATION. 
(a) IN GENERAL.—Paragraph (4) of section 6427(l) 
(relating to nontaxable uses of diesel fuel and kerosene) 
is amended to read as follows: 
‘‘(4) REFUNDS FOR KEROSENE USED IN AVIA-
TION.—
‘‘(A) KEROSENE
USED
IN
COMMERCIAL 
AVIATION.—In the case of kerosene used in 
commercial aviation (as defined in section 
4083(b)) (other than supplies for vessels or air-
craft within the meaning of section 4221(d)(3)), 
paragraph (1) shall not apply to so much of the 
tax imposed by section 4041 or 4081, as the 
case may be, as is attributable to—
‘‘(i) the Leaking Underground Stor-
age Tank Trust Fund financing rate im-
posed by such section, and 
‘‘(ii) so much of the rate of tax speci-
fied 
in 
section 
4041(c) 
or 
4081(a)(2)(A)(iii), as the case may be, as 
does not exceed 4.3 cents per gallon.
‘‘(B) KEROSENE
USED
IN
NONCOMMER-
CIAL AVIATION.—In the case of kerosene used 
in aviation that is not commercial aviation (as 
so defined) (other than any use which is exempt 
from the tax imposed by section 4041(c) other 
than by reason of a prior imposition of tax), 
paragraph (1) shall not apply to—
‘‘(i) any tax imposed by section 
4041(c), and 
‘‘(ii) so much of the tax imposed by 
section 4081 as is attributable to—
‘‘(I) the Leaking Underground 
Storage Tank Trust Fund financing 
rate imposed by such section, and 
‘‘(II) so much of the rate of tax 
specified in section 4081(a)(2)(A)(iii) 
as does not exceed the rate specified 
in section 4081(a)(2)(C)(ii). 
‘‘(C) PAYMENTS
TO
ULTIMATE, 
REG-
ISTERED VENDOR.—
‘‘(i) IN
GENERAL.—With respect to 
any kerosene used in aviation (other than 
kerosene described in clause (ii) or ker-
osene to which paragraph (5) applies), if 
the ultimate purchaser of such kerosene