Special rules and definitions
For purposes of this section—
(1) Carryforward of unused credit
(1)Carryforward of unused credit#
(A) In general If the credit allowable under subsection (a) for any taxable year exceeds the applicable tax limit for such taxable year, such excess shall be a carryover to each of the 3 succeeding taxable years and, subject to the limitations of subparagraph (B), shall be added to the credit allowable by subsection (a) for such succeeding taxable year.
(B) Limitation The amount of the unused credit which may be taken into account under subparagraph (A) for any taxable year shall not exceed the amount (if any) by which the applicable tax limit for such taxable year exceeds the sum of— (i) the credit allowable under subsection (a) for such taxable year determined without regard to this paragraph, and (ii) the amounts which, by reason of this paragraph, are carried to such taxable year and are attributable to taxable years before the unused credit year.
(C) Applicable tax limit For purposes of this paragraph, the term “applicable tax limit” means the limitation imposed by section 26(a) for the taxable year reduced by the sum of the credits allowable under this subpart (other than this section and sections 23 and 25D).
(1)(A)In general#
If the credit allowable under subsection (a) for any taxable year exceeds the applicable tax limit for such taxable year, such excess shall be a carryover to each of the 3 succeeding taxable years and, subject to the limitations of subparagraph (B), shall be added to the credit allowable by subsection (a) for such succeeding taxable year.
(1)(B)Limitation#
(2)Indebtedness not treated as certified where certain requirements not in fact met#
Subsection (a) shall not apply to any indebtedness if all the requirements of subsection (c)(1), (d), (e), (f), and (i) of section 143 and clauses (iv), (v), and (vii) of subsection (c)(2)(A), were not in fact met with respect to such indebtedness. Except to the extent provided in regulations, the requirements described in the preceding sentence shall be treated as met if there is a certification, under penalty of perjury, that such requirements are met.
(3)Period for which certificate in effect#
(A) In general Except as provided in subparagraph (B), a mortgage credit certificate shall be treated as in effect with respect to interest attributable to the period— (i) beginning on the date such certificate is issued, and (ii) ending on the earlier of the date on which— (I) the certificate is revoked by the issuing authority, or (II) the residence to which such certificate relates ceases to be the principal residence of the individual to whom the certificate relates.
(B) Certificate invalid unless indebtedness incurred within certain period A certificate shall not apply to any indebtedness which is incurred after the close of the second calendar year following the calendar year for which the issuing authority made the applicable election under subsection (c)(2)(A)(ii).
(C) Notice to Secretary when certificate revoked Any issuing authority which revokes any mortgage credit certificate shall notify the Secretary of such revocation at such time and in such manner as the Secretary shall prescribe by regulations.
(3)(A)In general#
Except as provided in subparagraph (B), a mortgage credit certificate shall be treated as in effect with respect to interest attributable to the period—
(i) beginning on the date such certificate is issued, and
(ii) ending on the earlier of the date on which— (I) the certificate is revoked by the issuing authority, or (II) the residence to which such certificate relates ceases to be the principal residence of the individual to whom the certificate relates.
(3)(A)(i)#
(4)Reissuance of mortgage credit certificates#
The Secretary may prescribe regulations which allow the administrator of a mortgage credit certificate program to reissue a mortgage credit certificate specifying a certified mortgage indebtedness that replaces the outstanding balance of the certified mortgage indebtedness specified on the original certificate to any taxpayer to whom the original certificate was issued, under such terms and conditions as the Secretary determines are necessary to ensure that the amount of the credit allowable under subsection (a) with respect to such reissued certificate is equal to or less than the amount of credit which would be allowable under subsection (a) with respect to the original certificate for any taxable year ending after such reissuance.
(5)Public notice that certificates will be issued#
At least 90 days before any mortgage credit certificate is to be issued after a qualified mortgage credit certificate program, the issuing authority shall provide reasonable public notice of—
(A) the eligibility requirements for such certificate,
(B) the methods by which such certificates are to be issued, and
(C) such other information as the Secretary may require.
(5)(A)#
the eligibility requirements for such certificate,
(5)(B)#
the methods by which such certificates are to be issued, and
(5)(C)#
such other information as the Secretary may require.
(6)Interest paid or accrued to related persons#
No credit shall be allowed under subsection (a) for any interest paid or accrued to a person who is a related person to the taxpayer (within the meaning of section 144(a)(3)(A)).
(7)Principal residence#
The term “principal residence” has the same meaning as when used in section 121.
(8)Qualified rehabilitation and home improvement#
(A) Qualified rehabilitation The term “qualified rehabilitation” has the meaning given such term by section 143(k)(5)(B).
(B) Qualified home improvement The term “qualified home improvement” means an alteration, repair, or improvement described in section 143(k)(4).
(8)(A)Qualified rehabilitation#
The term “qualified rehabilitation” has the meaning given such term by section 143(k)(5)(B).
(8)(B)Qualified home improvement#
The term “qualified home improvement” means an alteration, repair, or improvement described in section 143(k)(4).
(9)Qualified mortgage bond#
The term “qualified mortgage bond” has the meaning given such term by section 143(a)(1).
(10)Manufactured housing#
For purposes of this section, the term “single family residence” includes any manufactured home which has a minimum of 400 square feet of living space and a minimum width in excess of 102 inches and which is of a kind customarily used at a fixed location. Nothing in the preceding sentence shall be construed as providing that such a home will be taken into account in making determinations under section 143.