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.

Provides for a tax credit, under the Internal Revenue Code, of 25 percent of the interest paid or accrued on a mortgage secured by the taxpayer's principal residence.

Provides that for every $500 of adjusted gross income of such taxpayer in excess of $30,000, such credit shall be reduced by an increment of 0.05 percent.