The Home Mortgage Interest Credit Act of 2026 creates a new tax credit that allows homeowners to claim up to $2,000 per year (or $1,000 for those filing separately) for mortgage interest paid on their primary residence. The credit applies to interest on loans used to purchase, construct, or improve a home, as well as refinanced mortgages, and phases out for higher-income earners starting at $300,000 for joint filers, $200,000 for heads of household, and $150,000 for other filers. The credit is limited to U.S. citizens and resident aliens, and taxpayers cannot claim both this credit and a traditional mortgage interest deduction for the same debt. The credit takes effect for tax years beginning after December 31, 2026, and the dollar limits will be adjusted annually for inflation starting in 2028.