,i  #aad? ,,congress  #b;d ,session  ,h4
 ,r4 #edhj  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,june #ad1 #bjaf ,mr4 
,ryan ( ,ohio introduc$ ! foll[+ bill2  
:i* 0 ref]r$ to ! ,committee on ,ways & 
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to provide a cr$it
 = e>ly paym5t ( pr9cipal on c]ta9 home 
mortgages & to r$uce ! am\nt :i* may be 
treat$ z acquisition indebt$ness =      
purposes ( det]m9+ ! home mortgage      
int]e/ d$uction4  #a4 ,%ort title ,?is  
,act may be cit$ z ! ,boo/+ ,equity = ! 
,am]ican ,middle ,class ,act ( #bjaf or 
z ! ,,beam ,act ( #bjaf4  #b4           
,refundable cr$it = e>ly pr9cipal       
paym5ts on c]ta9 home mortgages  7a7 ,9 
g5]al ,subp>t ,c ( "p ,,iv ( sub*apt] ,a
 ( *apt] #a ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by ins]t+ aft] section  
#cf;,b ! foll[+ new section3  #cf;,c4   
,e>ly pr9cipal paym5ts on c]ta9 home    
mortgages  7a7 ,9 g5]al ,9 ! case ( an  
individual1 !re %all be all[$ z a cr$it 
aga9/ ! tax impos$ by ?is subtitle = !  

taxable ye> an am\nt equal to #ej p]c5t 
( ! excess home mortgage pr9cipal       
paym5ts made by ! taxpay] dur+ su*      
taxable ye>4  7b7 ,annual doll>         
limitation ,! cr$it all[$ "u subsection 
7a7 ) respect to any taxpay] = any      
taxable ye> %all n exce$ #ejj4  7c7     
,lifetime limitation ,no cr$it %all be  
all[$ "u subsection 7a7 to any taxpay] =
 any taxable ye> if cr$it 0 all[$ "u    
subsection 7a7 to su* taxpay] = any #aj 
prec$+ taxable ye>s4  7d7 ,limitation   
bas$ on modifi$ adju/$ gross income     
7#a7 ,9 g5]al ,! am\nt :i* w\ld 7b = ?is
 p>agraph & aft] ! application (        
subsection 7b77 be all[able z a cr$it "u
 subsection 7a7 %all be r$uc$ 7b n bel[ 
z]o7 by ! am\nt :i* be>s ! same ratio to
 ! am\nt :i* w\ld be s all[able z--     
7,a7 ! excess (-- 7i7 ! taxpay]'s       
modifi$ adju/$ gross income = ! taxable 
ye>1 ov]  7ii7 #abe1jjj 7twice su* am\nt
 9 ! case ( a jo9t return71 be>s to     
7,b7 #aj1jjj 7twice su* am\nt 9 ! case (
 a jo9t return74  7#b7 ,modifi$ adju/$  

gross income ,! t]m modifi$ adju/$ gross
 income means adju/$ gross income       
increas$ by any am\nt exclud$ f gross   
income "u section #iaa1 #ica1 or #icc4  
7e7 ,excess home mortgage pr9cipal      
paym5ts ,= purposes ( ?is subsection--  
7#a7 ,9 g5]al ,! t]m excess home        
mortgage pr9cipal paym5ts means1 )      
respect to qualifi$ home mortgage       
indebt$ness = any taxable ye>1 ! excess 
(--  7,a7 ! aggregate am\nt ( pr9cipal  
paid by ! taxpay] ) respect to su*      
indebt$ness dur+ su* taxable ye>1 ov]   
7,b7 ! aggregate am\nt ( pr9cipal :i*   
w\ld h be5 paid by ! taxpay] ) respect  
to su* indebt$ness dur+ su* taxable ye> 
if ! taxpay] _h timely made ea* requir$ 
paym5t "u ! t]ms ( ! indebt$ness dur+   
su* taxable ye> 7& no o!r paym5ts74     
7#b7 ,qualifi$ home mortgage indebt$ness
  7,a7 ,9 g5]al ,! t]m qualifi$ home    
mortgage indebt$ness means any          
acquisition indebt$ness 7z def9$ 9      
section #afc7;h77#c77;,b77 if-- 7i7 !   
resid5ce ) respect to su* acquisition   

indebt$ness is ! prim>y resid5ce 7)9 !  
mean+ ( section #aba7 ( ! taxpay]1 &    
7ii7 su* indebt$ness con/itutes a       
traditional mortgage4  7,b7 ,traditional
 mortgage ,= purposes ( ?is p>agraph1 ! 
t]m traditional mortgage means          
indebt$ness--  7i7 ! t]m ( :i* is n less
 ?an #ae ye>s & n m ?an #cj ye>s1 &     
7ii7 ! requir$ paym5ts "u :i* are ea* ! 
same am\nt & made 9 equal int]vals dur+ 
! t]m ( ! indebt$ness 7or if any paym5t 
is requir$ at a diff]5t int]val1 ! am\nt
 ( su* paym5t is adju/$ 9 ! same        
proportion z ! *ange 9 int]val74  7f7   
,rules relat$ to jo9t returns  7#a7 ,no 
cr$it = m>ri$ individuals fil+ sep>ately
 ,9 ! case ( a m>ri$ individual1 no     
cr$it %all be all[$ "u ?is section = any
 taxable ye> unless su* individual files
 a jo9t return ) su* individual's sp\se 
= su* taxable ye>4  7#b7 ,application ( 
lifetime limitation ) respect to jo9t   
returns ,if ! cr$it "u subsection 7a7 is
 all[$ ) respect to a jo9t return = any 
taxable ye>1 su* cr$it %all be treat$ = 

purposes ( apply+ subsection 7c7 z all[$
 to bo? sp\ses = su* taxable ye>4 ,=    
purposes ( apply+ subsection 7c7 )      
respect to a jo9t return = any taxable  
ye>1 ! taxpay] %all be treat$ z hav+ be5
 all[$ ! cr$it "u subsection 7a7 = #aj  
or m prec$+ taxable ye>s only if bo?    
sp\ses h be5 s all[$ su* cr$its4  4  7b7
 ,report+ ( excess home mortgage        
pr9cipal paym5ts ,section               
#fjej;,h7b77#b7 ( su* ,code is am5d$ by 
/rik+ & at ! end ( subp>agraph 7,c71 by 
r$esignat+ subp>agraph 7,d7 z           
subp>agraph 7,e71 & by ins]t+ aft]      
subp>agraph 7,c7 ! foll[+ new           
subp>agraph3  7,d7 ! am\nt ( excess home
 mortgage pr9cipal paym5ts 7z def9$ 9   
section #cf;,c7e77 receiv$ ) respect to 
su* mortgage dur+ ! cal5d> ye>1 &  4    
7c7 ,con=m+ am5dm5ts  7#a7 ,section     
#fbaa7;b77#d77;,a7 ( su* ,code is am5d$ 
by ins]t+ #cf;,c1 aft] #cf;,b14  7#b7   
,section #acbd7;b77#b7 ( title #ca1     
,unit$ ,/ates ,code1 is am5d$ by ins]t+ 
#cf;,c1 aft] #cf;,b14  7#c7 ,! table (  

sections = subp>t ,c ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] ! item relat+ to section #cf;,b ! 
foll[+ new item3  ,sec4 #cf;,c4 ,e>ly   
pr9cipal paym5ts on c]ta9 home          
mortgages4  4  7d7 ,effective date ,!   
am5dm5ts made by ?is section %all apply 
to taxable ye>s end+ aft] ! date ( !    
enactm5t ( ?is ,act4