U.S. Rep.

Phil English, R-3rd, last week praised House of Representatives' passage of legislation to provide tax fairness for homeowners facing foreclosure of their homes.English said the Mortgage Forgiveness Debt Relief Act of 2007 would correct some of the tax inequities that have been highlighted as a direct result of the current mortgage market."Only Washington could come up with a policy that sends the tax man after phantom income a family never receives," said English, ranking member of the Ways and Means Select Revenue Measures subcommittee."This legislation keeps the tax man away from fictitious income resulting from primary home mortgage debt forgiveness or foreclosure."In declining real estate markets, it is not uncommon for the value of a home to become less than the homeowner's outstanding obligations on their mortgage.Under current law, debt forgiven following mortgage foreclosure or renegotiation is considered income for tax purposes, resulting in tax liability for individuals and families.As a result, English noted, a homeowner must pay taxes, at ordinary income rates, on a phantom income, never realized by the homeowner, when a lender forgives part of the debt owed on a mortgage.The Mortgage Forgiveness Debt Relief Act would provide relief for those families in financial distress by permanently excluding debt forgiven under certain circumstances from tax liability.The measure would also help future homeowners secure their investments through a long-term extension of the tax deduction for private mortgage insurance.———State Rep.

Brian Ellis, R-11th, reported this week that applications for the Persian Gulf Conflict Veterans' Benefit Program will not be available until the first quarter of 2008.Previously, the Pennsylvania Department of Military and Veterans Affairs expected the applications to be available in late 2007.The program will compensate members and former members of the Armed Forces who served in the Persian Gulf conflict and were Pennsylvania residents at the time of such service.The $20 million estimated amount is based on the number of Pennsylvania veterans who performed active service in the Armed Forces in the Persian Gulf Theater of Operations.The following veterans may be eligible for benefits under this program:n The veteran must have served on active duty in the Persian Gulf Theater of Operations during the period from Aug. 2, 1990, to Aug. 31, 1991, and received the Southwest Asia Service Medal.• The veteran must have been a legal resident of Pennsylvania at the time of military service.• The veteran must have served under honorable conditions.Eligible Pennsylvania veterans of the Persian Gulf Conflict will receive $75 per month for each month (or major fraction) of active service in the Persian Gulf Conflict Theater up to a maximum of $525.Additionally, $5,000 will be paid on behalf of veterans who died in active service in the Persian Gulf Theater or as a result of service-connected wounds, diseases or injuries sustained during active service in the Persian Gulf TheaterAlso, $5,000 will be paid to Persian Gulf conflict prisoners of war.The bonus program was made possible through Act 29 of 2006 that was then adopted by an overwhelming majority of Pennsylvania voters during last year's general election.The deadline for submitting applications for this benefit is Aug. 31, 2015. For more information, visit the Web site of www.paveterans.state.pa.us.