MN SF1961

Limits the itemized deduction for qualified residence interest to interest paid on a principal residence only, excluding interest on any other residence allowed under federal tax law.

Maintains existing restrictions on mortgage interest deductions including a $750,000 cap on acquisition indebtedness ($375,000 for married separate returns) for debt incurred after December 16, 2017.

Continues to exclude home equity interest and mortgage insurance premiums from the deduction for interest purposes.

Appropriates unspecified amounts from the general fund for fiscal years 2024 and 2025 to the Minnesota Housing Finance Agency for the home ownership assistance program.

Takes effect for taxable years beginning after December 31, 2022.