I 
114TH CONGRESS 
2D SESSION 
H. R. 5480 
To amend the Internal Revenue Code of 1986 to provide a credit for early 
payment of principal on certain home mortgages and to reduce the 
amount which may be treated as acquisition indebtedness for purposes 
of determining the home mortgage interest deduction. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 14, 2016 
Mr. RYAN of Ohio 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 provide 
a credit for early payment of principal on certain home 
mortgages and to reduce the amount which may be treat-
ed as acquisition indebtedness for purposes of deter-
mining the home mortgage interest deduction. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Boosting Equity for 
the American Middle Class Act of 2016’’ or as the 
‘‘BEAM Act of 2016’’. 
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SEC. 2. REFUNDABLE CREDIT FOR EARLY PRINCIPAL PAY-
MENTS ON CERTAIN HOME MORTGAGES. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 36B the fol-
lowing new section: 
‘‘SEC. 36C. EARLY PRINCIPAL PAYMENTS ON CERTAIN 
HOME MORTGAGES. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this subtitle for the taxable year an amount equal to 
50 percent of the excess home mortgage principal pay-
ments made by the taxpayer during such taxable year. 
‘‘(b) ANNUAL DOLLAR LIMITATION.—The credit al-
lowed under subsection (a) with respect to any taxpayer 
for any taxable year shall not exceed $500. 
‘‘(c) LIFETIME LIMITATION.—No credit shall be al-
lowed under subsection (a) to any taxpayer for any taxable 
year if credit was allowed under subsection (a) to such 
taxpayer for any 10 preceding taxable years. 
‘‘(d) LIMITATION BASED ON MODIFIED ADJUSTED 
GROSS INCOME.— 
‘‘(1) IN GENERAL.—The amount which would 
(but for this paragraph and after the application of 
subsection (b)) be allowable as a credit under sub-
section (a) shall be reduced (but not below zero) by 
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the amount which bears the same ratio to the 
amount which would be so allowable as— 
‘‘(A) the excess of— 
‘‘(i) the taxpayer’s modified adjusted 
gross income for the taxable year, over 
‘‘(ii) $125,000 (twice such amount in 
the case of a joint return), bears to 
‘‘(B) $10,000 (twice such amount in the 
case of a joint return). 
‘‘(2) MODIFIED
ADJUSTED
GROSS
INCOME.— 
The term ‘modified adjusted gross income’ means 
adjusted gross income increased by any amount ex-
cluded from gross income under section 911, 931, or 
933. 
‘‘(e) EXCESS HOME MORTGAGE PRINCIPAL PAY-
MENTS.—For purposes of this subsection— 
‘‘(1) IN
GENERAL.—The term ‘excess home 
mortgage principal payments’ means, with respect to 
qualified home mortgage indebtedness for any tax-
able year, the excess of— 
‘‘(A) the aggregate amount of principal 
paid by the taxpayer with respect to such in-
debtedness during such taxable year, over 
‘‘(B) the aggregate amount of principal 
which would have been paid by the taxpayer 
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indebtedness (or if any payment is re-
quired at a different interval, the amount 
of such payment is adjusted in the same 
proportion as the change in interval). 
‘‘(f) RULES RELATED TO JOINT RETURNS.— 
‘‘(1) NO
CREDIT
FOR
MARRIED
INDIVIDUALS 
FILING SEPARATELY.—In the case of a married indi-
vidual, no credit shall be allowed under this section 
for any taxable year unless such individual files a 
joint return with such individual’s spouse for such 
taxable year. 
‘‘(2) APPLICATION
OF
LIFETIME
LIMITATION 
WITH RESPECT TO JOINT RETURNS.—If the credit 
under subsection (a) is allowed with respect to a 
joint return for any taxable year, such credit shall 
be treated for purposes of applying subsection (c) as 
allowed to both spouses for such taxable year. For 
purposes of applying subsection (c) with respect to 
a joint return for any taxable year, the taxpayer 
shall be treated as having been allowed the credit 
under subsection (a) for 10 or more preceding tax-
able years only if both spouses have been so allowed 
such credits.’’. 
(b) REPORTING OF EXCESS HOME MORTGAGE PRIN-
CIPAL PAYMENTS.—Section 6050H(b)(2) of such Code is 
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amended by striking ‘‘and’’ at the end of subparagraph 
(C), by redesignating subparagraph (D) as subparagraph 
(E), and by inserting after subparagraph (C) the following 
new subparagraph: 
‘‘(D) the amount of excess home mortgage 
principal payments (as defined in section 
36C(e)) received with respect to such mortgage 
during the calendar year, and’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 
(2) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36C,’’ after 
‘‘36B,’’. 
(3) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by inserting after the 
item relating to section 36B the following new item: 
‘‘Sec. 36C. Early principal payments on certain home mortgages.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
Æ 
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