,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #ieee  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,june #cj1 #bjbf,mr4  
,latim] introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to all[ a cr$it aga9/ tax
 = qualifi$ resid5ce int]e/ paid or     
accru$ dur+ ! taxable ye>1 & = o!r      
purposes4  #a4 ,%ort title  ,?is ,act   
may be cit$ z ! ,home ,mortgage ,int]e/ 
,cr$it ,act ( #bjbf4  #b4 ,cr$it =      
qualifi$ resid5ce int]e/  7a7 ,9 g5]al  
,subp>t ,a ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] section   
#be;,f ! foll[+ new section3  #be;,g4   
,qualifi$ resid5ce int]e/  7a7 ,9 g5]al 
,!re %all be all[$ z a cr$it aga9/ ! tax
 impos$ by ?is *apt] = ! taxable ye> an 
am\nt equal to ! aggregate am\nt (      
qualifi$ resid5ce int]e/ paid or accru$ 
by ! taxpay] dur+ su* taxable ye>4  7b7 
,qualifi$ resid5ce int]e/ ,= purposes ( 
?is section-- 7#a7 ,9 g5]al ,! t]m      

qualifi$ resid5ce int]e/ means any      
int]e/ on acquisition indebt$ness )     
respect to ! qualifi$ resid5ce ( !      
taxpay]4 ,= purposes ( ! prec$+ s5t5ce1 
! det]m9ation ( :e!r any prop]ty is !   
qualifi$ resid5ce ( ! taxpay] %all be   
made z ( ! "t ! int]e/ is accru$4  7#b7 
,acquisition indebt$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
 s5t5ce72 b only to ! ext5t ! am\nt ( ! 
indebt$ness result+ f su* ref9anc+ does 
n exce$ ! am\nt ( ! ref9anc$            
indebt$ness4  7#c7 ,qualifi$ resid5ce ,!
 t]m qualifi$ resid5ce means ! pr9cipal 
resid5ce 7)9 ! mean+ ( section #aba7 ( !
 taxpay]4  7c7 ,limitations  7#a7 ,doll>
 limitation  7,a7 ,9 g5]al ,! cr$it     

all[$ "u subsection 7a7 to any taxpay] =
 any taxable ye> %all n exce$ #b1jjj4   
7,b7 ,m>ri$ individuals fil+ sep>ately  
,9 ! case ( a m>ri$ individual fil+ a   
sep>ate return1 subp>agraph 7,a7 %all be
 appli$ by sub/itut+ #a1jjj = #b1jjj4   
7,c7 ,o!r individuals ,if two or m      
individuals :o are n m>ri$ own & use !  
same resid5ce z _! qualifi$ resid5ce &  
pay or accrue qualifi$ resid5ce int]e/ )
 respect to su* resid5ce1 ! am\nt ( !   
cr$it all[$ "u subsection 7a7 %all be   
allocat$ among su* individuals 9 su*    
mann] z ! ,secret>y may prescribe1      
except t ! total am\nt ( ! cr$its all[$ 
to all su* individuals = any taxable ye>
 %all n exce$ #b1jjj4  7#b7 ,limitation 
bas$ on modifi$ adju/$ gross income     
7,a7 ,9 g5]al ,! am\nt ( ! cr$it all[$  
"u subsection 7a7 = any taxable ye> %all
 be r$uc$ 7b n bel[ z]o7 by #bj = ea*   
#a1jjj 7or fraction !re(7 by :i* !      
taxpay]'s modifi$ adju/$ gross income   
exce$s ! ?re%old am\nt4 ,= purposes ( ! 
prec$+ s5t5ce1 ! 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  
7,b7 ,?re%old am\nt ,= purposes (       
subp>agraph 7,a71 ! t]m ?re%old am\nt   
means-- 7i7 #cjj1jjj 9 ! case ( a jo9t  
return or a surviv+ sp\se 7z def9$ 9    
section #b7;a771  7ii7 #bjj1jjj 9 ! case
 ( a head ( h\sehold 7z def9$ 9 section 
#b7;b771 &  7iii7 #aej1jjj 9 ! case ( a 
taxpay] n describ$ 9 clause 7i7 or 7ii74
  7d7 ,d5ial ( d\ble b5efit ,no cr$it or
 d$uction %all be all[$ "u ?is *apt] =  
any qualifi$ resid5ce int]e/ tak5 into  
acc\nt 9 det]m9+ ! cr$it "u ?is section4
  7e7 ,inflation adju/m5t ,9 ! case (   
any taxable ye> beg9n+ aft] #bjbg1 ea*  
doll> am\nt 9 subsection 7c7 %all be    
increas$ by an am\nt equal to--  7#a7   
su* doll> am\nt1 multipli$ by  7#b7 !   
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 = ! cal5d> ye> 9 :i* !       
taxable ye> beg9s1 det]m9$ by sub/itut+ 
cal5d> ye> #bjbf = cal5d> ye> #bjaf 9   
subp>agraph 7,a77ii7 !re(4  ,if any     

increase "u ! prec$+ s5t5ce is n a      
multiple ( #aj1 su* am\nt %all be r\nd$ 
to ! ne>e/ multiple ( #aj4  7f7         
,nonresid5t ali5 ineligible = cr$it ,no 
cr$it %all be all[$ "u ?is section to   
any nonresid5t ali54  7g7 ,regulations  
,! ,secret>y %all issue su* regulations 
or o!r guidance z may be necess>y to    
c>ry out ! purposes ( ?is section4  4   
7b7 ,cl]ical am5dm5t ,! table ( sections
 = subp>t ,a ( "p ,,iv ( sub*apt] ,a (  
*apt] #a ( su* ,code is am5d$ by ins]t+ 
aft] ! item relat+ to section #be;,f !  
foll[+ new item3  ,sec4 #be;,g4         
,qualifi$ resid5ce int]e/4  4  7c7      
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbf4