HF 3802 Summary

• Allows individuals to claim a mortgage interest credit for qualified residence interest defined under Internal Revenue Code section 163, available to both itemizers and nonitemizers who include qualified residence interest in taxable income.

• Credits equal seven percent of the lesser of $6,000 or the qualified residence interest deduction minus $4,000, with the credit reduced by the taxpayer's liability under Minnesota Statutes section 290.091.

• For nonresidents or part-year residents, the credit must be allocated based on the percentage calculated under subdivision 2c, paragraph (e).

• Amends Minnesota Statutes 2009 Supplement section 290.01, subdivision 19a to add qualified residence interest to federal taxable income additions for individuals, estates, and trusts.

• Effective for taxable years beginning after December 31, 2009.