[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2969 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2969

    To amend the Internal Revenue Code of 1986 to restore a partial 
   deduction for personal interest and thereby to encourage economic 
     recovery and to avoid the need to borrow against home equity.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 25, 2001

 Ms. Waters (for herself, Ms. Eshoo, Mr. Sawyer, Mr. Hoyer, Mr. Ford, 
Mr. McGovern, Ms. Lofgren, Mr. Moore, Mr. Markey, Ms. Pelosi, Mr. Moran 
 of Virginia, Mr. Langevin, Mr. DeFazio, Mr. Turner, Mr. Kucinich, Mr. 
 Holt, Mrs. Maloney of New York, Mr. Reyes, Mr. Pastor, Mr. Hinojosa, 
Mrs. Napolitano, Mr. Lampson, Mr. Gonzalez, Mr. Clement, Mr. Rodriguez, 
Mr. Clay, Ms. Carson of Indiana, Mr. Davis of Illinois, Mr. Fattah, Mr. 
Baldacci, Mr. Holden, Mr. Cummings, Mr. Delahunt, Mr. Sandlin, Mr. Farr 
 of California, Mr. Matsui, Mr. Clyburn, Mr. Thompson of Mississippi, 
  Mr. Jackson of Illinois, Mr. Watt of North Carolina, Mr. Wynn, Ms. 
  Woolsey, Mrs. Meek of Florida, Mr. Payne, Ms. Brown of Florida, Mr. 
   Owens, Ms. Jackson-Lee of Texas, and Mrs. Clayton) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to restore a partial 
   deduction for personal interest and thereby to encourage economic 
     recovery and to avoid the need to borrow against home equity.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Equity Loss Prevention and 
Economic Recovery Act of 2001''.

SEC. 2. RESTORATION OF PARTIAL DEDUCTION FOR PERSONAL INTEREST.

    (a) Restoration of $10,000 Deduction.--
            (1) In general.--Paragraph (1) of section 163(h) of the 
        Internal Revenue Code of 1986 is amended by inserting before 
        the period ``to the extent such interest exceeds $10,000''.
            (2) Inflation adjustment.--Paragraph (5) of section 163(h) 
        of such Code is amended to read as follows:
            ``(5) Inflation adjustment of $10,000 exception.--In the 
        case of any taxable year beginning in a calendar year after 
        2002, the $10,000 amount contained in paragraph (1) shall be 
        increased by an amount equal to--
                    ``(A) $10,000, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2001' for `calendar year 1992' in 
                subparagraph (B) thereof.
        Any increase determined under the preceding sentence shall be 
        rounded to the nearest multiple of $50.''
    (b) Repeal of Restrictions on Deduction for Education Loans.--
            (1) In general.--Subsection (b) of section 221 of such Code 
        (relating to relating to interest on education loans) is 
        amended by striking subsection (b) (relating to relating to 
        maximum deduction).
            (2) Conforming amendments.--
                    (A) Paragraph (1) of section 221(e) of such Code is 
                amended to read as follows:
            ``(1) Denial of double benefit.--No deduction shall be 
        allowed under any other provision of this chapter for any 
        amount for which a deduction is allowed under this section.''
                    (B) Subsection (f) of section 221 of such Code is 
                hereby repealed.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.
                                 <all>