U.S. Representative Keith Ellison (D-MN) recently re-introduced the Common Sense Housing Investment Act of 2013 (H.R. 1213) which would replace the federal mortgage interest deduction (MID) with a 15 percent non-refundable tax credit for all mortgages up to $500,000.  Legislators expect that phasing out the MID would increase federal revenue by $196 billion over ten years.  The resulting federal budget savings would be used to increase the Low-Income Housing Tax Credit (Housing Credit) and provide additional funding for the Housing Trust Fund, Section 8, and the Public Housing Capital Fund.  Ellison, a member of the House Financial Services Committee, introduced similar legislation in late 2012 but the measure was never taken up by either chambers.  H.R. 1213 was referred to the House Ways and Means and Financial Services Committees.

Click here to read similar legislation introduced by Ellison in the 112th Congress.