HF 1379

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/01/2023 11:02am

A bill for an act
relating to taxation; individual income; disallowing the itemized deduction for
mortgage interest on a second home; amending Minnesota Statutes 2022, section
290.0122, subdivision 5.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 290.0122, subdivision 5, is amended to read:

Subd. 5.

Interest.

A taxpayer is allowed a deduction for interest. The deduction equals
the amount allowed to the taxpayer as interest paid or accrued during the taxable year under
section 163 of the Internal Revenue Code with the following exceptions:

(1) qualified residence interest excludes home equity interest;

(2) acquisition indebtedness must not exceed $750,000, or $375,000 for a married
separate return, for indebtedness incurred on or after December 16, 2017; deleted text begin and
deleted text end

(3) mortgage insurance premiums treated as interest under section 163(h)(3)(E) are not
interest for the purposes of this subdivision deleted text begin . deleted text end new text begin ; and
new text end

new text begin (4) qualified residence interest under section 163(h)(3) is limited to interest paid or
accrued on a principal residence, as defined in section 163(h)(4)(A)(i)(I), and excludes any
other residence allowed under section 163(h)(4)(A)(i)(II).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022.
new text end