Home Mortgage Interest Credit Act of 2026
Sponsored By: Representative Latimer, George [D-NY-16]
Introduced
Summary
Would create a new tax credit for mortgage interest on a taxpayer's principal residence. It would let eligible homeowners claim a credit for qualified mortgage interest instead of deducting that same interest.
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- Homeowners: Eligible taxpayers could claim a credit for qualified mortgage interest on their primary home capped at $2,000 per year.
- Married filers: Married individuals filing separate returns would be limited to $1,000 each.
- Higher-income households: The credit phases out as income rises, with thresholds ranging from $150,000 for single filers up to $300,000 for joint filers.
- Co‑owners: Two or more unmarried owners who share a home split the credit and the total for that residence cannot exceed $2,000.
- Nonresident aliens: Nonresident aliens would not be eligible for the credit.
- Tax treatment: You could not both take a deduction and claim this credit for the same mortgage interest.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Refundable mortgage interest credit
If enacted, you would be able to claim a refundable tax credit for mortgage interest on your main home. The credit would equal the qualified residence interest you paid, up to $2,000 per taxpayer each year ($1,000 if married filing separately). The credit would be reduced by $20 for every $1,000 (or fraction) your modified adjusted gross income exceeds the filing-status threshold ($300,000 joint or surviving spouse, $200,000 head of household, $150,000 other filers). You could not also take another deduction or credit for the same interest, nonresident aliens would be ineligible, and rules would limit how co‑owners split the $2,000 total. The credit would apply to tax years beginning after December 31, 2026, and dollar limits would be inflation‑adjusted for years after 2027. Qualified residence interest is interest on acquisition indebtedness for your principal residence; limited refinancing amounts qualify. The Treasury Secretary would issue guidance to implement these rules.
Sponsors & CoSponsors
Sponsor
Latimer, George [D-NY-16]
NY • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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