as introduced - 92nd Legislature (2021 - 2022) Posted on 08/18/2021 02:46pm
A bill for an act
relating to taxation; individual income; disallowing the itemized deduction for
mortgage interest on a second home; appropriating money for the home ownership
assistance program; amending Minnesota Statutes 2020, section 290.0122,
subdivision 5.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2020, section 290.0122, subdivision 5, is amended to read:
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 $375,000 for a married
separate return, for indebtedness incurred on or after December 16, 2017; deleted text begin and
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(3) mortgage insurance premiums treated as interest under section 163(h)(3)(E) are not
interest for the purposes of this subdivisiondeleted text begin .deleted text end new text begin ; and
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(4) qualified residence interest under section 163(h)(3) is limited to interest paid or
accrued on a principal residence, as defined in section 163(h)(4)(A)(i)(I), and excludes any
other residence allowed under section 163(h)(4)(A)(i)(II).
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This section is effective for taxable years beginning after December
31, 2020.
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$....... in fiscal year 2022 and $....... in fiscal year 2023 are appropriated from the general
fund to the commissioner of the Minnesota Housing Finance Agency for the home ownership
assistance program under Minnesota Statutes, section 462A.21, subdivision 8.
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