shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Reporting requirements for bond usage. 
Sec. 3. Use of carryforward bond authority. 
Sec. 4. Elimination of refinancing limitation for mortgage revenue bonds. 
Sec. 5. Increase in financing limit for qualified home improvement loans. 
Sec. 6. Revision of recapture tax for mortgage revenue bonds. 
Sec. 7. Modifying calculation of credit for interest paid on certified indebted-
ness. 
Sec. 8. Extension of period for mortgage credit certificate to be in effect. 
Sec. 9. Extension of period to revoke election to issue mortgage credit certifi-
cates. 
Sec. 10. Adjustment of public notice requirement. 
Sec. 11. Elimination of lender reporting requirement. 
SEC. 2. REPORTING REQUIREMENTS FOR BOND USAGE. 
(a) IN GENERAL.—Section 146 is amended by adding 
at the end the following: 
‘‘(o) REPORTING.—Not later than December 31 of 
each calendar year, the Secretary shall submit a report 
to the Committee on Banking, Housing, and Urban Af-
fairs of the Senate, the Committee on Financial Services 
of the House of Representatives, the Committee on Ways 
and Means of the House of Representatives, and the Com-
mittee on Finance of the Senate, containing information, 
as provided to the Secretary by State and local issuing 
authorities, which specifies for each State— 
‘‘(1) the State ceiling of the State for the pre-
ceding calendar year, 
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‘‘(2) the aggregate amount of carryforwards 
available to all issuing authorities in the State avail-
able as of the first day of such preceding calendar 
year, 
‘‘(3) the total bond authority for such State for 
such preceding calendar year, as represented by the 
sum of the amounts reported under paragraphs (1) 
and (2), 
‘‘(4) the aggregate amount of private activity 
bonds issued by issuing authorities in the State dur-
ing such preceding calendar year for each purpose 
described in subsection (f)(5), including— 
‘‘(A) the amount of such bonds that were 
subject to the volume cap, and 
‘‘(B) the amount of such bonds that were 
issued pursuant to a carryforward under sub-
section (f), 
‘‘(5) the aggregate amount of carryforwards de-
scribed in paragraph (2) that expired after the last 
day of the preceding calendar year, and 
‘‘(6) the total amount of any excess amounts 
described in paragraph (1) of subsection (f) for the 
preceding calendar year which issuing authorities in 
the State did not elect to treat as a carryforward 
under such subsection.’’. 
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(b) ELECTRONIC REPORTS
BY ISSUERS.—Section 
149(e) is amended by adding at the end the following new 
paragraph: 
‘‘(4) ELECTRONIC REPORTING.—Any statement 
required under paragraph (2) shall be submitted 
electronically.’’. 
(c) AUTHORITY TO DISCLOSE INFORMATION.—Sec-
tion 6103(f) is amended by adding at the end the following 
new paragraph: 
‘‘(6) VOLUME CAP REPORTING.—The Secretary 
may disclose to the committees described in section 
146(o) the information required under such sec-
tion.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar years beginning after 
the date of enactment of this Act. 
SEC. 3. USE OF CARRYFORWARD BOND AUTHORITY. 
(a) IN GENERAL.—Paragraph (3) of section 146(f) 
is amended— 
(1) by striking subparagraph (A) and inserting 
the following: 
‘‘(A) IN GENERAL.—If any issuing author-
ity— 
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‘‘(i) elects a carryforward under para-
graph (1) with respect to any carryforward 
purpose, 
‘‘(ii) receives a carryforward under 
paragraph (4)(B)(i) with respect to any 
carryforward purpose, or 
‘‘(iii) redesignates a carryforward 
under 
paragraph 
(4)(B)(ii) 
for 
any 
carryforward purpose, 
any private activity bonds issued by such au-
thority with respect to such purpose at any time 
during the 3 calendar years following the cal-
endar year in which the carryforward arose 
shall not be taken into account under sub-
section (a) to the extent the amount of such 
bonds issued at or prior to such time does not 
exceed the amount of the carryforward elected, 
received, or redesignated for such purpose, as 
reduced by any amount subsequently trans-
ferred to another issuing authority or redesig-
nated for another purpose pursuant to para-
graph (4)(B).’’, and 
(2) in subparagraph (B), by inserting ‘‘, or re-
ceived or redesignated for,’’ after ‘‘with respect to’’. 
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(b) ELECTION.—Paragraph (4) of section 146(f) is 
amended to read as follows: 
‘‘(4) ELECTION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), any election under this sub-
section (and any identification or specification 
contained therein), once made, shall be irrev-
ocable. 
‘‘(B) EXCEPTION FOR HOUSING.— 
‘‘(i) TRANSFER.—In the case of any 
carryforward elected under paragraph (1) 
by an issuing authority with respect to any 
carryforward purpose, during the period 
described in paragraph (3)(A) with respect 
to such carryforward, such issuing author-
ity may transfer such carryforward to any 
issuing authority within the same State 
that is authorized to issue qualified mort-
gage bonds or exempt facility bonds de-
scribed in section 142(a)(7). 
‘‘(ii) REDESIGNATION.—In the case of 
any carryforward— 
‘‘(I) elected under paragraph (1) 
by an issuing authority with respect 
to any carryforward purpose which 
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has not been transferred pursuant to 
clause (i), or 
‘‘(II) received by an issuing au-
thority pursuant to clause (i) with re-
spect to any carryforward purpose, 
during the period described in paragraph 
(3)(A) with respect to such carryforward, 
such issuing authority may redesignate 
such carryforward to be for the purpose of 
issuing qualified mortgage bonds or mort-
gage credit certificates, or for the purpose 
of issuing exempt facility bonds described 
in section 142(a)(7). 
‘‘(iii) STATE DIRECTION.—In the case 
of a State which has enacted a law de-
scribed in subsection (e)(1), such State 
may, by law, prohibit, limit, require, or 
otherwise direct transfer or redesignation 
by issuing authorities within such State 
(except in the case of a constitutional 
home rule city) pursuant to this subpara-
graph.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to elections made under section 
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146(f) of the Internal Revenue Code of 1986 after Decem-
ber 31, 2025. 
SEC. 4. ELIMINATION OF REFINANCING LIMITATION FOR 
MORTGAGE REVENUE BONDS. 
(a) IN GENERAL.—Section 143(i)(1) is amended by 
adding at the end the following: 
‘‘(D) EXCEPTION FOR REFINANCING FOR 
CERTAIN MORTGAGORS.— 
‘‘(i) IN GENERAL.—The refinancing of 
a mortgage on a residence of a mortgagor 
who, as of the date of such refinancing, 
satisfies the principal residence require-
ments under subsection (c)(1) and the in-
come requirements under subsection (f) 
shall not be treated as the acquisition or 
replacement of an existing mortgage for 
purposes of subparagraph (A). 
‘‘(ii) SPECIAL
RULE.—In applying 
clause (i) to any refinancing— 
‘‘(I) subsection (d) shall not 
apply, and 
‘‘(II) subsection (e) shall be ap-
plied by using the market value of the 
residence at the time of refinancing in 
lieu of the acquisition cost.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to refinancing loans made on or 
after the date of enactment of this Act. 
SEC. 5. INCREASE IN FINANCING LIMIT FOR QUALIFIED 
HOME IMPROVEMENT LOANS. 
(a) INCREASE IN FINANCING LIMIT.—Paragraph (4) 
of section 143(k) is amended by striking ‘‘$15,000’’ and 
inserting ‘‘$75,000’’. 
(b) INFLATION ADJUSTMENT.—Paragraph (4) of sec-
tion 143(k), as amended by subsection (a), is amended— 
(1) by redesignating subparagraphs (A) and 
(B) as clauses (i) and (ii), respectively, and by mov-
ing such clauses (as so redesignated) 2 ems to the 
right, 
(2) by striking ‘‘The term’’ and inserting the 
following: 
‘‘(A) IN GENERAL.—The term’’, and 
(3) by adding at the end the following: 
‘‘(B) INFLATION ADJUSTMENT.— 
‘‘(i) IN GENERAL.—In the case of any 
calendar year beginning after 2026, the 
$75,000 amount in subparagraph (A) shall 
be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
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‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year, determined by 
substituting ‘2024’ for ‘2016’ in sub-
paragraph (A)(ii) thereof. 
‘‘(ii) ROUNDING.—If any increase 
under clause (i) is not a multiple of $100, 
such increase shall be rounded to the near-
est multiple of $100.’’. 
(c) EFFECTIVE DATES.—The amendments made by 
this section shall apply to loans made after the last day 
of the calendar year which includes the date of the enact-
ment of this Act. 
SEC. 6. REVISION OF RECAPTURE TAX FOR MORTGAGE 
REVENUE BONDS. 
(a) IN GENERAL.—Subparagraph (C) of section 
143(m)(4) is amended to read as follows: 
‘‘(C) HOLDING PERIOD PERCENTAGE.— 
‘‘(i) IN GENERAL.—The term ‘holding 
period percentage’ means the percentage 
determined in accordance with the fol-
lowing table: 
‘‘If 
the 
disposition 
occurs 
during a year after the 
testing date which is: 
The holding period percentage 
is: 
The 1st such year ........................................................................
The 2nd such year .......................................................................
The 3rd such year ........................................................................
The 4th such year ........................................................................
The 5th such year ........................................................................
100 
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‘‘(ii) RETIREMENTS
OF
INDEBTED-
NESS.—If the Federally subsidized indebt-
edness is completely repaid during any 
year of the 4-year period beginning on the 
testing date, the holding period percentage 
for succeeding years shall be zero.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 143(m)(2)(B) is amended by strik-
ing ‘‘9 years’’ and inserting ‘‘5 years’’. 
(2) Section 143(m)(7)(B)(ii) is amended by 
striking ‘‘9-year period’’ and inserting ‘‘5-year pe-
riod’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 7. MODIFYING CALCULATION OF CREDIT FOR INTER-
EST PAID ON CERTIFIED INDEBTEDNESS. 
(a) IN GENERAL.—Section 25 is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking subpara-
graph (B) and inserting the following: 
‘‘(B) the certified indebtedness amount on 
which interest was paid or accrued by the tax-
payer during the taxable year.’’, and 
(B) in paragraph (2)— 
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(i) 
in 
the 
heading, 
by 
striking 
‘‘WHERE CREDIT RATE EXCEEDS 20 PER-
CENT’’, and 
(ii) in subparagraph (A), by striking 
‘‘If the certificate credit rate exceeds 20 
percent, the’’ and inserting ‘‘The’’, and 
(2) in subsection (d)— 
(A) by striking paragraph (1) and insert-
ing the following: 
‘‘(1) IN GENERAL.— 
‘‘(A) CERTIFICATE
CREDIT
RATE.—The 
certificate credit rate specified in any mortgage 
credit certificate shall not be less than 1 per-
cent or more than 5 percent. 
‘‘(B) ANNUAL RATE.—With respect to any 
mortgage credit certificate, the issuing author-
ity may elect to specify a different annual cer-
tificate credit rate for each year of the term of 
the mortgage.’’, and 
(B) in paragraph (2)— 
(i) in the heading, by striking ‘‘CER-
TIFICATE
CREDIT
RATES’’ and inserting 
‘‘AMOUNT OF CREDIT CERTIFICATES’’, and 
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(ii) in subparagraph (A)(ii), by insert-
ing ‘‘average annual’’ before ‘‘certificate 
credit rate’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to mortgage credit certificates 
issued on or after the first day of the second calendar year 
that begins after the date of the enactment of this Act. 
SEC. 8. EXTENSION OF PERIOD FOR MORTGAGE CREDIT 
CERTIFICATE TO BE IN EFFECT. 
(a) IN GENERAL.—Section 25(e)(3)(B) is amended 
by striking ‘‘second’’ and inserting ‘‘fourth’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to mortgage credit certificates with 
respect to which the limitation under section 25(d)(2)(A) 
of the Internal Revenue Code of 1986 is determined by 
reference to nonissued bond amounts (a defined in section 
25(d)(2)(B) of such Code) relating to calendar years after 
December 31, 2025. 
SEC. 9. EXTENSION OF PERIOD TO REVOKE ELECTION TO 
ISSUE MORTGAGE CREDIT CERTIFICATES. 
(a) IN GENERAL.—Section 25(c)(2) is amended by 
adding at the end the following: 
‘‘(C) REVOCATION OF ELECTION TO ISSUE 
MORTGAGE CREDIT CERTIFICATES.— 
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‘‘(i) IN
GENERAL.—For purposes of 
any election made by an issuing authority 
under subparagraph (A)(ii) during any cal-
endar year, such issuing authority may 
subsequently elect to reduce the nonissued 
bond amount (as defined in subsection 
(d)(2)(B)) for such calendar year, provided 
that such election is made not later than 
the end of the succeeding calendar year. 
‘‘(ii) COORDINATION
WITH
PRIVATE 
ACTIVITY
BOND
CARRYFORWARD
LIMITA-
TION.—Under rules established by the Sec-
retary, nothing in clause (i) shall be con-
strued to permit an issuing authority to 
issue bonds under section 146(f)(3) for a 
calendar year after the close of the period 
prescribed for issuing such bonds under 
such section.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to elections made by an issuing 
authority under section 25(c)(2)(A)(ii) of the Internal 
Revenue Code of 1986 after December 31, 2025. 
SEC. 10. ADJUSTMENT OF PUBLIC NOTICE REQUIREMENT. 
(a) IN GENERAL.—Section 25(e)(5) is amended by 
striking ‘‘90 days’’ and inserting ‘‘30 days’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to notices provided after December 
31, 2025. 
SEC. 11. ELIMINATION OF LENDER REPORTING REQUIRE-
MENT. 
(a) IN GENERAL.—Section 25(g) is amended— 
(1) by striking ‘‘each person who makes a loan 
which is a certified indebtedness amount under any 
mortgage credit certificate’’ and inserting ‘‘each per-
son who issues a mortgage credit certificate’’, and 
(2) by striking the second sentence thereof. 
(b) CONFORMING AMENDMENTS.—Section 6709(c) is 
amended by striking ‘‘In the case of any report required 
under the second sentence of section 25(g), the’’ and in-
serting ‘‘The’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of enactment of 
this Act. 
Æ 
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