A bill to amend the Internal Revenue Code of 1954 to provide for a graduated credit, in lieu of a deduction, for interest paid on a mortgage on a taxpayer's principal residence and for the real property taxes paid on such principal residence.

Provides for a graduated tax credit, under the Internal Revenue Code, (in lieu of a tax deduction) expressed as a percentage of the interest paid on a mortgage on a taxpayer's principal residence and for the real property taxes paid on such principal residence. Defines the applicable percentage as 30 percent less .05 percent for every $500 by which income exceeds $20,000.