In order to encourage responsible homeownership, Congressman Mike Simpson has cosponsored H.R. 1317, legislation that would provide a tax credit to homeowners who have paid and continued to pay their mortgages.

“It is clear that the mortgage crisis is at the root of the financial turmoil facing our nation, and I recognize the need to stem the growing tide of foreclosures and plummeting value of homes,” said Simpson.  “One important way to do that is to make sure that the vast majority of Americans who have been paying their mortgages are able to stay in their homes, and H.R. 1317 let’s those hardworking families keep more of the money they earn to do just that.”

H.R. 1317 would allow individuals who are liable for principle mortgage payments which are due during 2008 and 2009 and who make all payments on time to receive a $5,000 tax credit.  A married individual filing a separate return would be eligible for a $2,500 tax credit.  The tax credit only applies on mortgages for principle residences in the United States.

“Despite the current crisis, more than 90% of American mortgage holders are paying their mortgages in full and on time, and some are struggling to do so,” Simpson said.  “This approach simply makes sense:  it is a way for those who have been acting responsibly to continue doing so, helping to grown our economy and allowing them to stay in their homes without proliferating the current problems through irresponsible loans or taxpayer bailouts.”