Illinois Housing Development Authority has added $12 million to the statewide mortgage credit certificate pool allocation effective July 7, 2009. This is from the Veterans’ program. This is only a portion of the Veterans’ allocation. The Veterans’ program is still active.
Program Highlights: The federal government allows each homeowner to claim an itemized income tax deduction for the amount of interest paid each year on a mortgage loan. The Mortgage Credit Certificate enhances this benefit. Homeowners with a MCC are allowed to use 20% of their annual mortgage interest as direct federal tax credit, resulting in a dollar for dollar reduction of their annual federal income tax liability. The remaining 80% of their annual mortgage interest will continue to qualify as an itemized tax deduction.