98 STAT. 906
PUBLIC LAW 98-369—JULY 18, 1984 "(B) the interest paid or incurred by the taxpayer during the taxable year on the remaining principal of the certified indebtedness amount. "(2) LIMITATION WHERE CREDIT RATE EXCEEDS 20 PERCENT.—
"(A) IN GENERAL.—If the certificate credit rate exceeds 20 percent, the amount of the credit allowed to the taxpayer under paragraph (1) for any taxable year shall not exceed $2,000. "(B) SPECIAL RULE WHERE 2 OR MORE PERSONS HOLD INTERESTS IN RESIDENCE.—If 2 or more persons hold interests in
any residence, the limitation of subparagraph (A) shall be allocated among such persons in proportion to their respective interests in the residence. "(b)
CERTIFICATE
CREDIT
RATE;
CERTIFIED
INDEBTEDNESS
AMOUNT.—For purposes of this section— "(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 103A(1)(6)) with respect to such residence, or "(iii) as a qualified rehabilitation loan (as defined in section 103A(1)(7)) with respect to such residence, and "(B) specified in the mortgage credit certificate. "(c) MORTGAGE CREDIT CERTIFICATE; QUALIFIED MORTGAGE CREDIT CERTIFICATE PROGRAM.—For purposes of this section— "(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.—
"(A) IN GENERAL.—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 qualified mortgage bonds which it may otherwise issue during such calendar year under section 103 A, "(iii) under which the indebtedness certified by mortgage credit certificates meets the requirements of the
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