Sponsor
George Latimer
Representative · D-NY
Representative · D-NY
The bill provides a modest, broadly targeted mortgage interest tax credit that lowers housing costs for many homeowners but excludes low‑income homeowners, replaces existing deductions (which can complicate tax outcomes), and phases out benefits for higher‑income filers.
Homeowners — particularly middle-class families — can reduce their federal tax bill by up to $2,000 per year through a mortgage acquisition interest tax credit, lowering annual housing costs for many owners.
Low-income homeowners who owe little or no federal income tax receive no benefit because the credit is nonrefundable, excluding poorer homeowners who still pay mortgage interest.
Taxpayers who previously claimed the mortgage interest deduction or other credits may face higher taxable income or more complicated tax planning because the new credit displaces those existing tax provisions.
Homeowners with large mortgage interest but modified adjusted gross income above the bill's thresholds will see the credit phased out, reducing or eliminating the benefit for higher‑income filers.
Based on analysis of 2 sections of legislative text.
Creates a nonrefundable credit up to $2,000 for qualified mortgage interest on a principal residence with MAGI phaseouts and rules for co-owners.
Official title: To amend the Internal Revenue Code of 1986 to allow a credit against tax for qualified residence interest paid or accrued during the taxable year, and for other purposes.
Introduced June 30, 2026 by George Latimer · Last progress June 30, 2026
Creates a nonrefundable federal tax credit equal to qualified mortgage interest paid on a taxpayer’s principal residence, capped at $2,000 per return ($1,000 married filing separately). The credit phases down for higher earners and displaces any deduction or other credit for the same interest. The credit applies beginning with taxable years after December 31, 2026, is not available to nonresident aliens, and includes inflation adjustment of dollar limits after 2027; Treasury must issue implementing regulations.