Homeowner Refinance Fairness Act of 2003

Homeowner Refinance Fairness Act of 2003 - Amends the Internal Revenue Code to set the refinancing limitation on the deduction for home mortgage interest at $1,000,000, or $500,000 in the case of a married individual filing a separate return (presently the Code holds that in the case of a taxpayer who secures indebtedness on a residence by refinancing, there may not be a deduction for an amount of indebtedness which exceeds the amount of the refinanced indebtedness).

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 171 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 171

To amend the Internal Revenue Code of 1986 to repeal the provision that 
limited the interest deduction on refinanced home mortgage indebtedness 
          to the amount of the indebtedness being refinanced.


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                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 2003

  Mr. Reynolds (for himself and Mrs. Myrick) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to repeal the provision that 
limited the interest deduction on refinanced home mortgage indebtedness 
          to the amount of the indebtedness being refinanced.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homeowner Refinance Fairness Act of 
2003''.

SEC. 2. REPEAL OF REFINANCING LIMITATION ON DEDUCTION FOR HOME MORTGAGE 
              INTEREST.

    (a) In General.--The last sentence of section 163(h)(3)(B)(i) of 
the Internal Revenue Code of 1986 is amended to read as follows:
``Such term also includes any indebtedness secured by such residence 
resulting from the refinancing of indebtedness meeting the requirements 
of the preceding sentence (or this sentence); but only to the extent 
the amount of the indebtedness resulting from such refinancing does not 
exceed the limitation under clause (ii).''
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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