Mortgage Interest Credit Rates by StateAnnual Mortgage Interest X Rate = Tax Credit Savings
IRS code section 25 allows a mortgage interest credit of 10% to 50% of your primary residence mortgage interest based on a mortgage credit certificate issued by your state housing authority typically. A 20% or less credit has no cap on the credit amount. A 21% to 50% credit certificate is limited to $2,000 per year. A carryover exists if your annual IRS taxes are less than the credit.
Each state can provide mortgage credit certificates or issue revenue bonds to offer subsidies in the form of interest or downpayment assistance to buyers. The mortgage credit certificate amount is 4 times more than the revenue bond amount as an incentive for the state to issue mortgage credit certificates (MCC) Northeast States Maine - no MCC Vermont - 10% to 50% MCC New Hampshire - 10% to 50% MCC Connecticut - no MCC Rhode Island - 20% MCC New York - no MCC New Jersey - no MCC Massachusetts - no MCC Pennsylvania - 10% to 50% MCC Middle Eastern States Virginia - 10% MCC Washington DC - 20% MCC West Virginia - no MCC Maryland - no MCC closed 6-19-2020 Delaware - 35% MCC Southern States Florida - 30% MCC expires 12-31-2020 Georgia - no MCC South Carolina - 50% MCC North Carolina - 30% MCC Kentucky - 25% MCC Tennessee - 50% MCC Alabama - 20% to 50% MCC Mississippi - 40% MCC Middle East States Ohio - 20% MCC & 40% MCC Illinois - no MCC (suspended 6-17-2020) Indiana - 25% MCC Missouri - 25% to 45% MCC Michigan - 20% MCC Wisconsin - 25% MCC Iowa - 50% MCC Minnesota - No MCC Middle South States Texas - 20% & 30% MCC Oklahoma - 50% MCC Arkansas - 50% MCC Louisiana - 40% MCC Kansas - 25% MCC Nebraska - no MCC Colorado - 20% to 25% MCC (Denver) Southwest States New Mexico - no MCC Arizona - 40% MCC California - 20% MCC Nevada - 20% MCC & 40% MCC Utah - no MCC Middle North States Montana - 20% MCC Wyoming - 10% to 50% MCC North Dakota - no MCC South Dakota 30% to 50% MCC Northwest States Washington - no MCC Oregon - 20% MCC (Portland) Idaho - 35% MCC Hawaii - 20% MCC Alaska - no MCC
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AuthorRandy Tarpey CPA Archives
January 2021
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