,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #abac  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,m>* #ae1 #bjac ,mr4  
,ellison 7= himself & ,mr4 ,scott (     
,virg9ia7 introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,ways &      
,means1 & 9 addition to ! ,committee on 
,f9ancial ,s]vices1 = a p]iod to be     
subsequ5tly det]m9$ by ! ,speak]1 9 ea* 
case = consid]ation ( su* provisions z  
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to replace !      
mortgage int]e/ d$uction ) a            
nonrefundable cr$it = indebt$ness secur$
 by a resid5ce1 to provide af=dable h\s+
 to extremely l[-income families1 & =   
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,common ,s5se ,h\s+    
,inve/m5t ,act ( #bjac4  #b4            
,congressional f9d+s ,! ,congress f9ds !
 foll[+3  7#a7 ,two pr9cipal ,f$]al h\s+
 goals are to increase ! rate ( home    
own]%ip & make r5tal h\s+ af=dable =    
l[-income families & individuals4  7#b7 

,mu* m progress has be5 a*iev$ on ! fir/
 goal ?an on ! second goal4  7#c7 ,!    
,f$]al ,gov]nm5t devotes m ?an ?ree     
times ! am\nt ( budget>y res\rces to    
support+ home own]%ip ?an x devotes to  
mak+ af=dable r5tal h\s+ available4     
7#d7 ,! burd5 ( h\s+ co/s is m pron\nc$ 
among r5t]s ?an among own]s4  7#e7 ,!re 
is a %ortage ( m ?an #g million homes   
af=dable to families 9 ! bottom #bj     
p]c5t ( income1 mean+ t !re are only #cj
 af=dable units = e #ajj families4  7#f7
 ,only "o 9 f\r families t qualify =    
r5tal h\s+ assi/ance receives b5efits4  
7#g7 ,h\s+ assi/ance wait+ li/s c be #aj
 ye>s long & 9 _m communities are clos$4
  7#h7 ,! %ortage ( r5tal homes t are   
af=dable = extremely l[-income h\seholds
 to be ! pr9cipal cause ( homelessness 9
 ! ,unit$ ,/ates4  7#i7 ,public h\s+    
facilities 9 ! ,unit$ ,/ates h m ?an #bf
 billion 9 def]r$ ma9t5ance aft] decades
 ( neglect :i* results 9 a loss (       
#aj1jjj units ea* ye>4  7#aj7 ,!        
l[-income h\s+ tax cr$it successfully   

provides #ajj1jjj units ( af=dable h\s+ 
e ye>4  7#aa7 ,e tax re=m commission has
 recomm5d$ capp+ ! mortgage int]e/      
d$uction & conv]t+ x to a fair] & simpl]
 cr$it4  7#ab7 ,m ?an #ge p]c5t ( !     
value ( ! mortgage int]e/ d$uction      
inures to ! b5efit ( ! top #bj p]c5t (  
e>n]s4  7#ac7 ,few] ?an half ( tax fil]s
 ) a home mortgage claim ! mortgage     
int]e/ d$uction4  7#ad7 ,only #i p]c5t (
 rural tax fil]s claim ! mortgage int]e/
 d$uction4  7#ae7 ,n9ety-six p]c5t (    
homes sold betwe5 #bjje & #bjaa sold =  
less ?an #ejj1jjj4  7#af7 ,a bett]      
approa* t provides equitable b5efits =  
families :o buy homes1 enables m l[- &  
mod]ate-income home[n]s to receive a    
b5efit1 & inve/s 9 af=dable r5tal h\s+  
to assi/ ^? :o us$ to be homeless or :o 
h extremely or v l[ incomes is ne$$ to  
/r5g!n families & communities4  #c4     
,replacem5t ( mortgage int]e/ d$uction )
 mortgage int]e/ cr$it  7a7             
,nonrefundable cr$it ,subp>t ,a ( "p    
,,iv ( sub*apt] ,a ( *apt] #a ( !       

,int]nal ,rev5ue ,code ( #aihf 7relat+  
to nonrefundable p]sonal cr$its7 is     
am5d$ by ins]t+ aft] section #be;,d !   
foll[+ new section3  #be;,e4 ,int]e/ on 
indebt$ness secur$ by qualifi$ resid5ce 
7a7 ,all[ance ( cr$it ,9 ! case ( an    
individual1 !re %all be all[$ z a cr$it 
aga9/ ! tax impos$ by ?is *apt] = !     
taxable ye> an am\nt equal to #ae p]c5t 
( ! qualifi$ resid5ce int]e/ paid or    
accru$ dur+ ! taxable ye>4  7b7         
,qualifi$ resid5ce int]e/ ,= purposes ( 
?is section--  7#a7 ,9 g5]al ,! t]m     
qualifi$ resid5ce int]e/ means int]e/   
:i* is paid or accru$ dur+ ! taxable ye>
 on--  7,a7 acquisition indebt$ness )   
respect to any qualifi$ resid5ce ( !    
taxpay]1 or  7,b7 home equity           
indebt$ness ) respect to any qualifi$   
resid5ce ( ! taxpay]4  ,= purposes ( !  
prec$+ s5t5ce1 ! det]m9ation ( :e!r any 
prop]ty is a qualifi$ resid5ce ( !      
taxpay] %all be made z ( ! "t ! int]e/  
is accru$4  7#b7 ,ov]all limitation ,!  
aggregate am\nt ( indebt$ness tak5 into 

acc\nt = any p]iod = purposes ( ?is     
section %all n exce$ #ejj1jjj 7#bej1jjj 
9 ! case ( a m>ri$ individual fil+ a    
sep>ate return74  7#c7 ,acquisition     
indebt$ness ,! t]m acquisition          
indebt$ness means any indebt$ness :i*-- 
7,a7 is incurr$ 9 acquir+1 con/ruct+1 or
 sub/antially improv+ any qualifi$      
resid5ce ( ! taxpay]1 &  7,b7 is secur$ 
by su* resid5ce4  ,su* t]m also includes
 any indebt$ness secur$ by su* resid5ce 
result+ f ! ref9anc+ ( indebt$ness meet+
 ! requirem5ts ( ! prec$+ s5t5ce 7or ?is
 s5t5ce71 b only to ! ext5t ! am\nt ( ! 
indebt$ness result+ f su* ref9anc+ does 
n exce$ ! am\nt ( ! ref9anc$            
indebt$ness4  7#d7 ,home equity         
indebt$ness  7,a7 ,9 g5]al ,! t]m home  
equity indebt$ness means any indebt$ness
 7o!r ?an acquisition indebt$ness7      
secur$ by a qualifi$ resid5ce to ! ext5t
 ! aggregate am\nt ( su* indebt$ness    
does n exce$--  7i7 ! fair m>ket value (
 su* qualifi$ resid5ce1 r$uc$ by  7ii7 !
 am\nt ( acquisition indebt$ness )      

respect to su* resid5ce4  7,b7          
,limitation ,! aggregate am\nt treat$ z 
home equity indebt$ness = any p]iod %all
 n exce$ #ajj1jjj 7#ej1jjj 9 ! case ( a 
m>ri$ individual fil+ a sep>ate return74
  7c7 ,special rules ,= purposes ( ?is  
section--  7#a7 ,qualifi$ resid5ce ,!   
t]m qualifi$ resid5ce means--  7,a7 !   
pr9cipal resid5ce 7)9 ! mean+ ( section 
#aba7 ( ! taxpay]1 &  7,b7 #a o!r       
resid5ce ( ! taxpay] :i* is select$ by !
 taxpay] = purposes ( ?is subsection = !
 taxable ye> & :i* is us$ by ! taxpay] z
 a resid5ce 7)9 ! mean+ ( section       
#bhj;,a7d77#a774  7#b7 ,m>ri$           
individuals fil+ sep>ate returns ,if a  
m>ri$ c\ple does n file a jo9t return = 
! taxable ye>--  7,a7 su* c\ple %all be 
treat$ z #a taxpay] = purposes (        
p>agraph 7#a71 &  7,b7 ea* individual   
%all be entitl$ to take into acc\nt #a  
resid5ce unless bo? individuals cons5t 9
 writ+ to #a individual tak+ into acc\nt
 ! pr9cipal resid5ce & #a o!r resid5ce4 
7#c7 ,resid5ce n r5t$ ,= purposes (     

p>agraph 7#a77;,b71 not)/&+ section     
#bhj;,a7d77#a71 if ! taxpay] does n r5t 
a dwell+ unit at any "t dur+ a taxable  
ye>1 su* unit may be treat$ z a resid5ce
 = su* taxable ye>4  7#d7 ,un5=ceable   
security int]e/s ,indebt$ness %all n    
fail to be treat$ z secur$ by any       
prop]ty solely because1 "u any          
applicable ,/ate or local home/ead or   
o!r debtor protection law 9 effect on   
,augu/ #af1 #aihf1 ! security int]e/ is 
ineffective or ! en=ceability ( !       
security int]e/ is re/rict$4  7#e7      
,special rules = e/ates & tru/s ,=      
purposes ( det]m9+ :e!r any int]e/ paid 
or accru$ by an e/ate or tru/ is        
qualifi$ resid5ce int]e/1 any resid5ce  
held by su* e/ate or tru/ %all be treat$
 z a qualifi$ resid5ce ( su* e/ate or   
tru/ if su* e/ate or tru/ e/abli%es t   
su* resid5ce is a qualifi$ resid5ce ( a 
b5efici>y :o has a pres5t int]e/ 9 su*  
e/ate or tru/ or an int]e/ 9 ! residu>y 
( su* e/ate or tru/4  7d7 ,coord9ation )
 d$uction ,9 ! case ( any taxable ye>   

beg9n+ 9 cal5d> ye>s #bjad ?r\gh #bjah1 
! taxpay] may elect to apply ?is section
 9 lieu ( ! d$uction "u section #afc =  
qualifi$ resid5ce int]e/4  4  7b7       
,phase\t ( d$uction ,section #afc7;h7 ( 
su* ,code is am5d$ by add+ at ! end !   
foll[+ new p>agraph3  7#f7 ,phase\t     
7,a7 ,9 g5]al ,9 ! case ( any taxable   
ye> beg9n+ 9 a cal5d> ye> aft] #bjac1 ! 
am\nt o!rwise all[able z a d$uction by  
reason ( p>agraph 7#b77;,d7 %all be !   
applicable p]c5tage ( su* am\nt4  7,b7  
,applicable p]c5tage ,= purposes (      
subp>agraph 7,a71 ! applicable p]c5tage 
%all be det]m9$ 9 accordance ) ! foll[+ 
table3  ,= taxable ye>s beg9n+ 9 cal5d> 
ye>3,! applicable p]c5tage is3  #bjadajj
  #bjaehj  #bjaffj  #bjagdj  #bjahbj    
#bjai & !reaft]#j4  4  7c7 ,phas$[n (   
mortgage limit ,subp>agraph 7,b7 (      
section #afc7;h77#c7 ( su* ,code is     
am5d$ by add+ at ! end ! foll[+3  7iii7 
,phas$[n  7,i7 ,9 g5]al ,9 ! case ( any 
taxable ye> beg9n+ 9 cal5d> ye>s #bjad  
?r\gh #bjah1 clause 7ii7 %all be appli$ 

by sub/itut+ ! am\nts specifi$ 9 ! table
 9 subclause 7,,ii7 ( ?is clause =      
#a1jjj1jjj & #ejj1jjj1 respectively4    
7,,ii7 ,phas$[n am\nts ,= purposes (    
subclause 7,i71 ! am\nts specifi$ 9 ?is 
subclause = a taxable ye> %all be !     
am\nts specifi$ 9 ! foll[+ table3  ,=   
taxable ye>s beg9n+ 9 cal5d> ye>3,am\nt 
sub/itut$ = #a1jjj1jjj3;,am\nt sub/itut$
 = #ejj1jjj3  #bjada1jjj1jjjejj1jjj     
#bjaeijj1jjjdej1jjj  #bjafhjj1jjjdjj1jjj
  #bjaggjj1jjjcej1jjj                   
#bjahfjj1jjjcjj1jjj4  4  7d7 ,cl]ical   
am5dm5t ,! table ( sections = subp>t ,a 
( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su*
 ,code is am5d$ by ins]t+ aft] section  
#be;,d ! foll[+ new item3  ,sec4 #be;,e4
 ,int]e/ on indebt$ness secur$ by       
qualifi$ resid5ce4  4  7e7 ,effective   
date ,! am5dm5ts made by ?is section    
%all apply ) respect to int]e/ paid or  
accru$ aft] ,decemb] #ca1 #bjac4  #d4   
,d$uction all[$ = int]e/ & taxes relat+ 
to l& = dwell+ purposes own$ or leas$ by
 coop]ative h\s+ corporations  7a7 ,9   

g5]al ,subp>agraph 7,b7 ( section       
#baf7;b77#a7 ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by ins]t+ or l&1 aft]  
build+14  7b7 ,effective date ,! am5dm5t
 made by subsection 7a7 %all apply to   
am\nts paid or accru$ aft] ,decemb] #ca1
 #bjab4  #e4 ,use ( mortgage int]e/     
sav+s to increase l[-income h\s+ tax    
cr$it  7a7 ,9 g5]al ,subclause 7,i7 (   
section #db7;h77#c77;,c77ii7 ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ #a4ge 7#a4ej = #bjja7 & ins]t+ 
#b4gj4  7b7 ,inflation adju/m5t         
,subp>agraph 7,h7 ( section #db7;h77#c7 
( su* ,code is am5d$ to read z foll[s3  
7,h7 ,co/-(-liv+ adju/m5t  7i7 ,9 g5]al 
,9 ! case ( a cal5d> ye> aft] #bjjb1 !  
#b1jjj1jjj am\nt 9 subp>agraph 7,c7 %all
 be increas$ by an am\nt equal to--     
7,i7 su* doll> am\nt1 multipli$ by      
7,,ii7 ! co/-(-liv+ adju/m5t det]m9$ "u 
section #a7;f77#c7 = su* cal5d> ye> by  
sub/itut+ cal5d> ye> #bjja = cal5d> ye> 
#aiib 9 subp>agraph 7,b7 !re(4  7ii7 ,p]
 capita am\nt ,9 ! case ( a cal5d> ye>  

aft] #bjad1 ! #b4gj am\nt 9 subp>agraph 
7,c7 %all be increas$ by an am\nt equal 
to--  7,i7 su* doll> am\nt1 multipli$ by
  7,,ii7 ! co/-(-liv+ adju/m5t det]m9$  
"u section #a7;f77#c7 = su* cal5d> ye>  
by sub/itut+ cal5d> ye> #bjac = cal5d>  
ye> #aiib 9 subp>agraph 7,b7 !re(4      
7iii7 ,r\nd+  7,i7 ,9 ! case ( !        
#b1jjj1jjj am\nt1 any increase "u clause
 7i7 :i* is n a multiple ( #e1jjj %all  
be r\nd$ to ! next l[e/ multiple (      
#e1jjj4  7,,ii7 ,9 ! case ( ! #b4gj     
am\nt1 any increase "u clause 7ii7 :i*  
is n a multiple ( #e c5ts %all be r\nd$ 
to ! next l[e/ multiple ( #e c5ts4  4   
7c7 ,eligible basis ,clause 7i7 (       
section #db7;d77#e77;,b7 ( su* ,code is 
am5d$ by /rik+ & at ! end ( subclause   
7,i71 by /rik+ ! p]iod at ! end (       
subclause 7,,ii7 & ins]t+ 1 &1 & by add+
 at ! end ! foll[+3  7,,iii7 9 ! case ( 
a build+ conta9+ units :i* are designat$
 to s]ve extremely l[-income h\seholds  
by ! ,/ate h\s+ cr$it ag5cy & require ! 
increase 9 cr$it "u ?is subp>agraph 9   

ord] = su* build+ to be f9ancially      
feasible z "p ( a qualifi$ l[-income    
h\s+ project1 ! eligible basis ( su*    
build+ det]m9$ by ! portion ( su* units 
%all be #aej p]c5t ( su* basis det]m9$  
)\t reg>d to ?is subp>agraph4  4  7d7   
,effective date ,! am5dm5ts made by ?is 
section %all apply to allocations made 9
 cal5d> ye>s beg9n+ aft] ,decemb] #ca1  
#bjac4  #f4 ,use ( mortgage int]e/ sav+s
 = af=dable h\s+ programs  7a7 ,use (   
sav+s ,= ea* ye>1 ! ,secret>y ( !       
,treasury %all det]m9e ! am\nt ( rev5ues
 accru+ to ! g5]al fund ( ! ,treasury by
 reason ( ! enactm5t ( section #c ( ?is 
,act t rema9 aft] use ( su* rev5ues 9   
accordance ) section #e ( ?is ,act &    
%all cr$it an am\nt equal to su* rema9+ 
rev5ues z foll[s3  7#a7 ,h\s+ ,tru/     
,fund ,! ,secret>y %all cr$it ! ,h\s+   
,tru/ ,fund e/abli%$ "u section #acch ( 
! ,f$]al ,h\s+ ,ent]prises ,f9ancial    
,safety & ,s\ndness ,act ( #aiib 7#ab   
,u4,s4,c4 #defh7 ) an am\nt equal to #fj
 p]c5t ( ! am\nt ( su* rema9+ rev5ues4  

7#b7 ,section #h r5tal assi/ance ,!     
,secret>y %all cr$it an am\nt equal to  
#cj p]c5t ( ! am\nt ( su* rema9+ rev5ues
 to ! ,secret>y ( ,h\s+ & ,urban        
,developm5t = use only = provid+ t5ant- 
& project-bas$ r5tal assi/ance "u       
section #h ( ! ,unit$ ,/ates ,h\s+ ,act 
( #aicg 7#db ,u4,s4,c4 #adcg;f74  7#c7  
,public ,h\s+ ,capital ,fund ,!         
,secret>y %all cr$it an am\nt equal to  
#aj p]c5t ( ! am\nt ( su* rema9+ rev5ues
 to ! ,public ,h\s+ ,capital ,fund "u   
section #i7;d7 ( ! ,unit$ ,/ates ,h\s+  
,act ( #aicg 7#db ,u4,s4,c4 #adcg;g7d774
  7b7 ,*anges to ,h\s+ ,tru/ ,fund ,n   
lat] ?an ! expiration ( ! #f-mon? p]iod 
beg9n+ on ! date ( ! enactm5t ( ?is     
,act1 ! ,secret>y ( ,h\s+ & ,urban      
,developm5t %all revise ! regulations   
relat+ to ! ,h\s+ ,tru/ ,fund e/abli%$  
"u section #acch ( ! ,f$]al ,h\s+       
,ent]prises ,f9ancial ,safety &         
,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4   
#defh7 to provide t su* section is c>ri$
 out ) ! maximum am\nt ( flexibility    

possible :ile comply+ ) su* section1 :i*
 %all include revis+ su* regulations--  
7#a7 to increase ! limitation on am\nts 
f ! ,fund t are available = use = op]at+
 assi/ance = h\s+2  7#b7 to all[ public 
h\s+ ag5cies & tribally designat$ h\s+  
entities to be recipi5t ( grants am\nts 
f ! ,fund t are allocat$ to a ,/ate or  
,/ate designat$ entity2 &  7#c7 elim9ate
 ! applicability ( rules = ! ,fund t are
 bas$ on ! ,,home ,inve/m5t ,p>tn]%ips  
,act 7#db ,u4,s4,c4 #agba et seq474