HouseH.R. 9555119th Congress

Home Mortgage Interest Credit Act of 2026

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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9555 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9555

 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.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 30, 2026

 Mr. Latimer introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 
 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Mortgage Interest Credit Act of 
2026''.

SEC. 2. CREDIT FOR QUALIFIED RESIDENCE INTEREST.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 25F the following new section:

``SEC. 25G. QUALIFIED RESIDENCE INTEREST.

    ``(a) In General.--There shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an amount equal to the 
aggregate amount of qualified residence interest paid or accrued by the 
taxpayer during such taxable year.
    ``(b) Qualified Residence Interest.--For purposes of this section--
            ``(1) In general.--The term `qualified residence interest' 
        means any interest on acquisition indebtedness with respect to 
        the qualified residence of the taxpayer. For purposes of the 
        preceding sentence, the determination of whether any property 
        is the qualified residence of the taxpayer shall be made as of 
        the time the interest is accrued.
            ``(2) Acquisition indebtedness.--The term `acquisition 
        indebtedness' means any indebtedness which--
                    ``(A) is incurred in acquiring, constructing, or 
                substantially improving any qualified residence of the 
                taxpayer, and
                    ``(B) is secured by such residence.
        Such term also includes any indebtedness secured by such 
        residence resulting from the refinancing of indebtedness 
        meeting the requirements of the preceding sentence (or this 
        sentence); but only to the extent the amount of the 
        indebtedness resulting from such refinancing does not exceed 
        the amount of the refinanced indebtedness.
            ``(3) Qualified residence.--The term `qualified residence' 
        means the principal residence (within the meaning of section 
        121) of the taxpayer.
    ``(c) Limitations.--
            ``(1) Dollar limitation.--
                    ``(A) In general.--The credit allowed under 
                subsection (a) to any taxpayer for any taxable year 
                shall not exceed $2,000.
                    ``(B) Married individuals filing separately.--In 
                the case of a married individual filing a separate 
                return, subparagraph (A) shall be applied by 
                substituting `$1,000' for `$2,000'.
                    ``(C) Other individuals.--If two or more 
                individuals who are not married own and use the same 
                residence as their qualified residence and pay or 
                accrue qualified residence interest with respect to 
                such residence, the amount of the credit allowed under 
                subsection (a) shall be allocated among such 
                individuals in such manner as the Secretary may 
                prescribe, except that the total amount of the credits 
                allowed to all such individuals for any taxable year 
                shall not exceed $2,000.
            ``(2) Limitation based on modified adjusted gross income.--
                    ``(A) In general.--The amount of the credit allowed 
                under subsection (a) for any taxable year shall be 
                reduced (but not below zero) by $20 for each $1,000 (or 
                fraction thereof) by which the taxpayer's modified 
                adjusted gross income exceeds the threshold amount. For 
                purposes of the preceding sentence, the term `modified 
                adjusted gross income' means adjusted gross income 
                increased by any amount excluded from gross income 
                under section 911, 931, or 933.
                    ``(B) Threshold amount.--For purposes of 
                subparagraph (A), the term `threshold amount' means--
                            ``(i) $300,000 in the case of a joint 
                        return or a surviving spouse (as defined in 
                        section 2(a)),
                            ``(ii) $200,000 in the case of a head of 
                        household (as defined in section 2(b)), and
                            ``(iii) $150,000 in the case of a taxpayer 
                        not described in clause (i) or (ii).
    ``(d) Denial of Double Benefit.--No credit or deduction shall be 
allowed under this chapter for any qualified residence interest taken 
into account in determining the credit under this section.
    ``(e) Inflation Adjustment.--In the case of any taxable year 
beginning after 2027, each dollar amount in subsection (c) shall be 
increased by an amount equal to--
            ``(1) such dollar amount, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for the calendar year in which the taxable year 
        begins, determined by substituting `calendar year 2026' for 
        `calendar year 2016' in subparagraph (A)(ii) thereof.
If any increase under the preceding sentence is not a multiple of $10, 
such amount shall be rounded to the nearest multiple of $10.
    ``(f) Nonresident Alien Ineligible for Credit.--No credit shall be 
allowed under this section to any nonresident alien.
    ``(g) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary to carry out the purposes of this 
section.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 25F the following new 
item:

``Sec. 25G. Qualified residence interest.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2026.
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