Source: http://taxtv.com/code/00013-USCODE-2011-title26-subtitleA-chap1-subchapA-partIV-subpartA-sec25/
Timestamp: 2017-06-27 10:16:28
Document Index: 369398183

Matched Legal Cases: ['§25', '§25', '§612', '§1301', '§1862', '§1013', '§4005', '§7104', '§11408', '§108', '§13141', '§1807', '§312', '§6008', '§201', '§618', '§1335', '§402', '§205', '§1004', '§10909', '§101', '§10909', '§1144', '§1142', '§1004', '§402', '§1335', '§402', '§618', '§201', '§1013', '§1301', '§4005', '§1013', '§4005', '§1862', '§1301', '§1301', '§1301', '§1862', '§1301', '§1013', '§1301', '§1862', '§1301', '§1301', '§1301', '§1301', '§1862', '§1301', '§1301', '§1301', '§1301', '§1301', '§1301', '§1301', '§1301', '§1301', '§1899', '§901', '§2']

IRC §25. Interest on certain home mortgages - TaxTV.com
IRC §25. Interest on certain home mortgages
There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the product of—
(A) the certificate credit rate, and
(B) the interest paid or accrued by the taxpayer during the taxable year on the remaining principal of the certified indebtedness amount.
(2) Limitation where credit rate exceeds 20 percent
(b) Certificate credit rate; certified indebtedness amount
(1) Certificate credit rate
The term “certificate credit rate” means the rate of the credit allowable by this section which is specified in the mortgage credit certificate.
(2) Certified indebtedness amount
The term “certified indebtedness amount” means the amount of indebtedness which is—
(A) incurred by the taxpayer—
(i) to acquire the principal residence of the taxpayer,
(ii) as a qualified home improvement loan (as defined in section 143(k)(4)) with respect to such residence, or
(iii) as a qualified rehabilitation loan (as defined in section 143(k)(5)) with respect to such residence, and
(B) specified in the mortgage credit certificate.
(c) Mortgage credit certificate; qualified mortgage credit certificate program
(1) Mortgage credit certificate
The term “mortgage credit certificate” means any certificate which—
(A) is issued under a qualified mortgage credit certificate program by the State or political subdivision having the authority to issue a qualified mortgage bond to provide financing on the principal residence of the taxpayer,
(B) is issued to the taxpayer in connection with the acquisition, qualified rehabilitation, or qualified home improvement of the taxpayer’s principal residence,
(C) specifies—
(i) the certificate credit rate, and
(ii) the certified indebtedness amount, and
(D) is in such form as the Secretary may prescribe.
(2) Qualified mortgage credit certificate program
The term “qualified mortgage credit certificate program” means any program—
(i) which is established by a State or political subdivision thereof for any calendar year for which it is authorized to issue qualified mortgage bonds,
(ii) under which the issuing authority elects (in such manner and form as the Secretary may prescribe) not to issue an amount of private activity bonds which it may otherwise issue during such calendar year under section 146,
(iii) under which the indebtedness certified by mortgage credit certificates meets the requirements of the following subsections of section 143 (as modified by subparagraph (B) of this paragraph):
(I) subsection (c) (relating to residence requirements),
(II) subsection (d) (relating to 3-year requirement),
(III) subsection (e) (relating to purchase price requirement),
(IV) subsection (f) (relating to income requirements),
(V) subsection (h) (relating to portion of loans required to be placed in targeted areas), and
(VI) paragraph (1) of subsection (i) (relating to other requirements),
(iv) under which no mortgage credit certificate may be issued with respect to any residence any of the financing of which is provided from the proceeds of a qualified mortgage bond or a qualified veterans’ mortgage bond,
(v) except to the extent provided in regulations, which is not limited to indebtedness incurred from particular lenders,
(vi) except to the extent provided in regulations, which provides that a mortgage credit certificate is not transferrable, and
(vii) if the issuing authority allocates a block of mortgage credit certificates for use in connection with a particular development, which requires the developer to furnish to the issuing authority and the homebuyer a certificate that the price for the residence is no higher than it would be without the use of a mortgage credit certificate.
(B) Modifications of section 143
Under regulations prescribed by the Secretary, in applying section 143 for purposes of subclauses (II), (IV), and (V) of subparagraph (A)(iii)—
(i) each qualified mortgage certificate credit program shall be treated as a separate issue,
(ii) the product determined by multiplying—
(I) the certified indebtedness amount of each mortgage credit certificate issued under such program, by
(II) the certificate credit rate specified in such certificate,
(iii) paragraph (1) of section 143(d) shall be applied by substituting “100 percent” for “95 percent or more”.
(d) Determination of certificate credit rate
(2) Aggregate limit on certificate credit rates
In the case of each qualified mortgage credit certificate program, the sum of the products determined by multiplying—
(ii) the certificate credit rate with respect to such certificate,
(B) Nonissued bond amount
For purposes of subparagraph (A), the term “nonissued bond amount” means, with respect to any qualified mortgage credit certificate program, the amount of qualified mortgage bonds which the issuing authority is otherwise authorized to issue and elects not to issue under subsection (c)(2)(A)(ii).
(e) Special rules and definitions
(1) Carryforward of unused credit
The amount of the unused credit which may be taken into account under subparagraph (A) for any taxable year shall not exceed the amount (if any) by which the applicable tax limit for such taxable year exceeds the sum of—
(i) the credit allowable under subsection (a) for such taxable year determined without regard to this paragraph, and
(ii) the amounts which, by reason of this paragraph, are carried to such taxable year and are attributable to taxable years before the unused credit year.
(C) Applicable tax limit
For purposes of this paragraph, the term “applicable tax limit” means—
(i) in the case of a taxable year to which section 26(a)(2) applies, the limitation imposed by section 26(a)(2) for the taxable year reduced by the sum of the credits allowable under this subpart (other than this section and sections 23, 25D, and 1400C), and
(ii) in the case of a taxable year to which section 26(a)(2) does not apply, the limitation imposed by section 26(a)(1) for the taxable year reduced by the sum of the credits allowable under this subpart (other than this section and sections 23, 24, 25A(i), 25B, 25D, 30, 30B, 30D, and 1400C).
(2) Indebtedness not treated as certified where certain requirements not in fact met
(3) Period for which certificate in effect
Except as provided in subparagraph (B), a mortgage credit certificate shall be treated as in effect with respect to interest attributable to the period—
(i) beginning on the date such certificate is issued, and
(ii) ending on the earlier of the date on which—
(I) the certificate is revoked by the issuing authority, or
(II) the residence to which such certificate relates ceases to be the principal residence of the individual to whom the certificate relates.
(B) Certificate invalid unless indebtedness incurred within certain period
(C) Notice to Secretary when certificate revoked
(4) Reissuance of mortgage credit certificates
(5) Public notice that certificates will be issued
At least 90 days before any mortgage credit certificate is to be issued after a qualified mortgage credit certificate program, the issuing authority shall provide reasonable public notice of—
(A) the eligibility requirements for such certificate,
(B) the methods by which such certificates are to be issued, and
(6) Interest paid or accrued to related persons
(7) Principal residence
(8) Qualified rehabilitation and home improvement
(A) Qualified rehabilitation
The term “qualified rehabilitation” has the meaning given such term by section 143(k)(5)(B).
(B) Qualified home improvement
The term “qualified home improvement” means an alteration, repair, or improvement described in section 143(k)(4).
(9) Qualified mortgage bond
The term “qualified mortgage bond” has the meaning given such term by section 143(a)(1).
(10) Manufactured housing
For purposes of this section, the term “single family residence” includes any manufactured home which has a minimum of 400 square feet of living space and a minimum width in excess of 102 inches and which is of a kind customarily used at a fixed location. Nothing in the preceding sentence shall be construed as providing that such a home will be taken into account in making determinations under section 143.
(f) Reduction in aggregate amount of qualified mortgage bonds which may be issued where certain requirements not met
(2) Correction amount
For purposes of paragraph (1), the term “correction amount” means an amount equal to the excess credit amount divided by 0.25.
(B) Excess credit amount
(I) the credit amount for any mortgage credit certificate program, over
(II) the amount which would have been the credit amount for such program had such program met the requirements of paragraph (2) of subsection (d).
(ii) Credit amount
(3) Special rule for States having constitutional home rule cities
(4) Exception where certification program
Each person who makes a loan which is a certified indebtedness amount under any mortgage credit certificate shall file a report with the Secretary containing—
(1) the name, address, and social security account number of the individual to which the certificate was issued,
(2) the certificate’s issuer, date of issue, certified indebtedness amount, and certificate credit rate, and
(3) such other information as the Secretary may require by regulations.
(h) Regulations; contracts
(i) Recapture of portion of Federal subsidy from use of mortgage credit certificates
(Added Pub. L. 98–369, div. A, title VI, §612(a), July 18, 1984, 98 Stat. 905; amended Pub. L. 99– 4, title XIII, §1301(f), title XVIII, §§1862(a)–(d)(1), 1899A(1), Oct. 22, 1986, 100 Stat. 2655, 2883, 2884, 2958; Pub. L. 100–647, title I, §1013(a)(25), (26), title IV, §4005(a)(2), (g)(7), Nov. 10, 1988, 102 Stat. 3543, 3645, 36 ; Pub. L. 101–239, title VII, §7104(b), Dec. 19, 1989, 103 Stat. 2305; Pub. L. 101–508, title XI, §11408(b), Nov. 5, 1990, 104 Stat. 1388–477; Pub. L. 102–227, title I, §108(b), Dec. 11, 1991, 105 Stat. 1688; Pub. L. 103–66, title XIII, §13141(b), Aug. 10, 1993, 107 Stat. 436; Pub. L. 104–188, title I, §1807(c)(1), Aug. 20, 1996, 110 Stat. 1902; Pub. L. 105–34, title III, §312(d)(1), Aug. 5, 1997, 111 Stat. 839; Pub. L. 105–206, title VI, §6008(d)(7), July 22, 1998, 112 Stat. 812; Pub. L. 107–16, title II, §201(b)(2)(F), title VI, §618(b)(2)(B), June 7, 2001, 115 Stat. 46, 108; Pub. L. 109–58, title XIII, §1335(b)(2), Aug. 8, 2005, 119 Stat. 1036; Pub. L. 109–135, title IV, §402(i)(3)(C), (4), Dec. 21, 2005, 119 Stat. 2613, 2615; Pub. L. 110–343, div. B, title II, §205(d)(1)(B), Oct. 3, 2008, 122 Stat. 3838; Pub. L. 111–5, div. B, title I, §§1004(b)(2), 1142(b)(1)(B), 1144(b)(1)(B), Feb. 17, 2009, 123 Stat. 314, 330, 332; Pub. L. 111–148, title X, §10909(b)(2)(B), (c), Mar. 23, 2010, 124 Stat. 1023; Pub. L. 111–312, title I, §101(b)(1), Dec. 17, 2010, 124 Stat. 3298.)
For termination of amendment by section 402(i)(3)(H) of Pub. L. 109–135, see Effective and Termination Dates of 2005 Amendments note below.
2010—Subsec. (e)(1)(C). Pub. L. 111–148, §10909(b)(2)(B), (c), as amended by Pub. L. 111–312, temporarily struck out “23,” after “and sections” in cls. (i) and (ii). See Effective and Termination Dates of 2010 Amendment note below.
2009—Subsec. (e)(1)(C)(ii). Pub. L. 111–5, §1144(b)(1)(B), inserted “30B,” after “30,”.
Pub. L. 111–5, §1142(b)(1)(B), inserted “30,” after “25D,”.
Pub. L. 111–5, §1004(b)(2), inserted “25A(i),” after “24,”.
2008—Subsec. (e)(1)(C)(ii). Pub. L. 110–343 inserted “30D,” after “25D,”.
2005—Subsec. (e)(1)(C). Pub. L. 109–135, §402(i)(3)(C), (H), temporarily reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this paragraph, the term ‘applicable tax limit’ means the limitation imposed by section 26(a) for the taxable year reduced by the sum of the credits allowable under this subpart (other than this section and sections 23, 24, 25B, and 1400C).” See Effective and Termination Dates of 2005 Amendments notes below.
Pub. L. 109–58, §1335(b)(2), which directed amendment of subpar. (C) by substituting “other than this section, section 23, section 25D, and section 1400C” for “this section and sections 23 and 1400C”, was repealed by Pub. L. 109–135, §402(i)(4). See Effective and Termination Dates of 2005 Amendments notes below.
2001—Subsec. (e)(1)(C). Pub. L. 107–16, §618(b)(2)(B), inserted “25B,” after “24,”.
Pub. L. 107–16, §§201(b)(2)(F), 901, temporarily inserted “, 24,” after “sections 23”. See Effective and Termination Dates of 2001 Amendment note below.
1998—Subsec. (e)(1)(C). Pub. L. 105–206 substituted “sections 23 and 1400C” for “section 23”.
1997—Subsec. (e)(7). Pub. L. 105–34 substituted “section 121” for “section 1034”.
1996—Subsec. (e)(1)(C). Pub. L. 104–188 inserted “and section 23” after “other than this section”.
1993—Subsecs. (h) to (j). Pub. L. 103–66 redesignated subsecs. (i) and (j) as (h) and (i), respectively, and struck out heading and text of former subsec. (h). Text read as follows: “No election may be made under subsection (c)(2)(A)(ii) for any period after June 30, 1992.”
1991—Subsec. (h). Pub. L. 102–227 substituted “June 30, 1992” for “December 31, 1991”.
1990—Subsec. (h). Pub. L. 101–508 substituted “December 31, 1991” for “September 30, 1990”.
1989—Subsec. (h). Pub. L. 101–239 substituted “for any period after September 30, 1990” for “for any calendar year after 1989”.
1988—Subsec. (c)(2)(A)(ii). Pub. L. 100–647, §1013(a)(25), amended Pub. L. 99– 4, §1301(f)(2)(C)(ii), see 1986 Amendment note below.
Subsec. (h). Pub. L. 100–647, §4005(a)(2), substituted “1989” for “1988”.
Pub. L. 100–647, §1013(a)(26), substituted “1988” for “1987”.
Subsec. (j). Pub. L. 100–647, §4005(g)(7), added subsec. (j).
1986—Subsec. (a)(1)(B). Pub. L. 99– 4, §1862(d)(1), substituted “paid or accrued” for “paid or incurred”.
Subsec. (b)(2)(A)(ii). Pub. L. 99– 4, §1301(f)(2)(A), substituted “section 143(k)(4)” for “section 103A(l)(6)”.
Subsec. (b)(2)(A)(iii). Pub. L. 99– 4, §1301(f)(2)(B), substituted “section 143(k)(5)” for “section 103A(l)(7)”.
Subsec. (c)(2)(A). Pub. L. 99– 4, §1301(f)(2)(E), substituted “section 143(a)(2)” for “section 103A(c)(2)” in provision following cl. (vii).
Pub. L. 99– 4, §1862(b), inserted “Under regulations, rules similar to the rules of subparagraphs (B) and (C) of section 103A(c)(2) shall apply to the requirements of this subparagraph.”
Subsec. (c)(2)(A)(ii). Pub. L. 99– 4, §1301(f)(2)(C)(ii), as amended by Pub. L. 100–647, §1013(a)(25), substituted “private activity bonds which it may otherwise issue during such calendar year under section 146” for “qualified mortgage bonds which it may otherwise issue during such calendar year under section 103A”.
Subsec. (c)(2)(A)(iii). Pub. L. 99– 4, §1301(f)(2)(C)(i), substituted “section 143” for “section 103A” in introductory provisions, added subcls. (I) to (VI), and struck out former subcls. (I) to (V) which read as follows:
Subsec. (c)(2)(A)(iii)(V). Pub. L. 99– 4, §1862(a), substituted “subsection (j), other than paragraph (2) thereof” for “paragraph (1) of subsection (j)”.
Subsec. (c)(2)(B). Pub. L. 99– 4, §1301(f)(2)(C)(i), substituted in heading and introductory provisions “section 143” for “section 103A”.
Pub. L. 99– 4, §1301(f)(2)(F), inserted in introductory provisions reference to subcl. (V), added cl. (iii) and closing provisions, and struck out former cl. (iii) and closing provisions which read as follows:
“(iii) paragraph (1) of section 103A(e) shall be applied by substituting ‘100 percent’ for ‘90 percent or more’.
Clause (iii) shall not apply if the issuing authority submits a plan to the Secretary for administering the 90-percent requirement of section 103A(e)(1) and the Secretary is satisfied that such requirement will be met under such plan.”
Subsec. (d)(2)(A). Pub. L. 99– 4, §1301(f)(1)(A), substituted “25 percent” for “20 percent” in concluding provisions.
Subsec. (d)(3). Pub. L. 99– 4, §1301(f)(2)(G), struck out par. (3) “Additional limit in certain cases” which read as follows: “In the case of a qualified mortgage credit certificate program in a State which—
“(A) has a State ceiling (as defined in section 103A(g)(4)) for the year an election is made that exceeds 20 percent of the average annual aggregate principal amount of mortgages executed during the immediately preceding 3 calendar years for single family owner-occupied residences located within the jurisdiction of such State, or
Subsec. (e)(1)(B). Pub. L. 99– 4, §1862(c), amended subpar. (B) generally. Prior to amendment, subpar. (B) “Limitations” read as follows: “The amount of the unused credit which may be taken into account under subparagraph (A) for any taxable year shall not exceed the amount by which the applicable tax limit for such taxable year exceeds the sum of the amounts which, by reason of this paragraph, are carried to such taxable year and are attributable to taxable years before the unused credit year.”
Subsec. (e)(2). Pub. L. 99– 4, §1301(f)(2)(H), substituted “subsections (c)(1), (d), (e), (f), and (i) of section 143” for “subsection (d)(1), (e), (f), and (j) of section 103A”.
Subsec. (e)(6). Pub. L. 99– 4, §1301(f)(2)(I), substituted “section 144(a)(3)(A)” for “section 103(b)(6)(C)(i)”.
Subsec. (e)(8)(A). Pub. L. 99– 4, §1301(f)(2)(J), substituted “section 143(k)(5)(B)” for “section 103A(l)(7)(B)”.
Subsec. (e)(8)(B). Pub. L. 99– 4, §1301(f)(2)(K), substituted “section 143(k)(4)” for “section 103A(l)(6)”.
Subsec. (e)(9). Pub. L. 99– 4, §1301(f)(2)(L), substituted “section 143(a)(1)” for “section 103A(c)(1)”.
Subsec. (e)(10). Pub. L. 99– 4, §1301(f)(2)(M), substituted “section 143” for “section 103A”.
Subsec. (f)(1). Pub. L. 99– 4, §1301(f)(2)(N), substituted “subsection (d) of section 146” for “paragraph (4) of section 103A(g)”.
Subsec. (f)(2)(A). Pub. L. 99– 4, §1301(f)(1)(B), substituted “0.25” for “0.20”.
Subsec. (f)(3). Pub. L. 99– 4, §1301(f)(2)(O), substituted “section 146(d)(3)(C)” for “section 103A(g)(5)(C)”.
Subsec. (f)(4). Pub. L. 99– 4, §1899A(1), substituted “ensure” for “insure”.
Amendment by section 1004(b)(2) of Pub. L. 111–5 applicable to taxable years beginning after Dec. 31, 2008, see section 1004(d) of Pub. L. 111–5, set out as an Effective and Termination Dates of 2009 Amendment note under section 24 of this title.
Amendment by section 1142(b)(1)(B) of Pub. L. 111–5 applicable to vehicles acquired after Feb. 17, 2009, see section 1142(c) of Pub. L. 111–5, set out as an Effective and Termination Dates of 2009 Amendment note under section 24 of this title.
Amendment by section 1144(b)(1)(B) of Pub. L. 111–5 applicable to taxable years beginning after Dec. 31, 2008, see section 1144(c) of Pub. L. 111–5, set out as an Effective and Termination Dates of 2009 Amendment note under section 24 of this title.
Amendment by section 402(i)(3)(C) of Pub. L. 109–135 subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16, §901, in the same manner as the provisions of such Act to which such amendment relates, see section 402(i)(3)(H) of Pub. L. 109–135, set out as a note under section 23 of this title.
The Internal Revenue Code of 1986 to be applied and administered as if the amendments made by section 1335(b)(1)–(3) of Pub. L. 109–58 had never been enacted, see section 402(i)(4) of Pub. L. 109–135, set out as a note under section 23 of this title.
Amendments by Pub. L. 109–135 effective as if included in the provisions of the Energy Policy Act of 2005, Pub. L. 109–58, to which they relate, except that amendment by section 402(i)(3)(C) of Pub. L. 109–135 is applicable to taxable years beginning after Dec. 31, 2005, see section 402(m) of Pub. L. 109–135, set out as a note under section 23 of this title.
Amendment by section 201(b)(2)(F) of Pub. L. 107–16 applicable to taxable years beginning after Dec. 31, 2001, see section 201(e)(2) of Pub. L. 107–16, set out as a note under section 24 of this title.
Amendment by section 618(b)(2)(B) of Pub. L. 107–16 applicable to taxable years beginning after Dec. 31, 2001, see section 618(d) of Pub. L. 107–16, set out as a note under section 24 of this title.
Amendment by section 201(b)(2)(F) of Pub. L. 107–16 inapplicable to taxable, plan, or limitation years beginning after Dec. 31, 2012, and the Internal Revenue Code of 1986 to be applied and administered to such years as if such amendment had never been enacted, see section 901 of Pub. L. 107–16, set out as a note under section 1 of this title.
Amendment by Pub. L. 104–188 applicable to taxable years beginning after Dec. 31, 1996, see section 1807(e) of Pub. L. 104–188, set out as an Effective Date note under section 23 of this title.
Section 13141(f)(2) of Pub. L. 103–66 provided that: “The amendment made by subsection (b) [amending this section] shall apply to elections for periods after June 30, 1992.”
Section 108(c)(2) of Pub. L. 102–227 provided that: “The amendment made by subsection (b) [amending this section] shall apply to elections for periods after December 31, 1991.”
Amendment by Pub. L. 101–508 applicable to elections for periods after Sept. 30, 1990, see section 11408(d)(2) of Pub. L. 101–508, set out as a note under section 143 of this title.
Amendment by section 1013(a)(25), (26) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99– 4, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Amendment by section 4005(a)(2) of Pub. L. 100–647 applicable to bonds issued, and nonissued bond amounts elected, after Dec. 31, 1988, see section 4005(h)(1) of Pub. L. 100–647, set out as a note under section 143 of this title.
Amendment by section 4005(g)(7) of Pub. L. 100–647 applicable to financing provided, and mortgage credit certificates issued, after Dec. 31, 1990, with certain exceptions, see section 4005(h)(3) of Pub. L. 100–647, set out as a note under section 143 of this title.
Amendment by section 1301(f)(1) of Pub. L. 99– 4 applicable to nonissued bond amounts elected after Aug. 15, 1986, and amendment by section 1301(f)(2) of Pub. L. 99– 4 applicable to certificates issued with respect to nonissued bond amounts elected after Aug. 15, 1986, see section 1311(b) of Pub. L. 99– 4, as amended, set out as an Effective Date; Transitional Rules note under section 141 of this title.
Amendment by section 1862(a)–(d)(1) of Pub. L. 99– 4 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99– 4, set out as a note under section 48 of this title.
Section 612(g) of Pub. L. 98–369, as amended by Pub. L. 99– 4, §2, Oct. 22, 1986, 100 Stat. 2095, provided that: