Sec. 602. Phase down of mortgage interest deduction
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Section 163(h)(3) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: In the case of amounts paid or accrued during a taxable year beginning after December 31, 2020, the amount of qualified residence interest allowed as a deduction under this section for such taxable year shall not exceed an amount equal to the applicable percentage of the qualified residence interest which would have been allowed as a deduction to the taxpayer under this section without regard to this subparagraph.
For purposes of clause (i), the applicable percentage shall be determined under the following table: In the case of taxable years The applicable beginning with or during: percentage shall be: 2021 90% 2022 80% 2023 70% 2024 60% 2025 50% 2026 40% 2027 30% 2028 20% 2029 10% 2030 and thereafter 0% . The amendments made by this section shall apply to amounts paid or accrued during taxable years beginning after December 31, 2020.