MORTGAGE CREDIT CERTIFICATE (MCC) PROGRAM
MORTGAGOR’S NOTICE OF POTENTIAL BENEFITS
PROVIDED BY A MORTGAGE CREDIT CERTIFICATE (MCC)
If you are considering applying for a Mortgage Credit Certificate (an “MCC”) through a lender, it
is EXTREMELY IMPORTANT that you understand the potential benefits an MCC may or may not
provide you in being able to afford your contemplated home purchase.
Please review the General Overview of an MCC (below).
IT IS STRONGLY
RECOMMENDED THAT YOU CONTACT A TAX PROFESSIO NAL BEFORE APPLYING FOR
AN MCC IN ORDER TO DETERMINE THE POTENTIAL BENEFITS AN MCC MAY PROVIDE
YOU. The Montana Board of Housing reviews MCC applications, based on the contents of such
applications, solely for compliance with program guidelines and does not determine whether a particular
applicant will benefit from an MCC.
An MCC permits a qualifying buyer purchasing a qualifying home to claim a tax credit that may
reduce the buyer’s federal income tax liability, if any. Mortgagors may use their tax savings to help with
their home mortgage payments.
The size of the annual tax credit will be 20% of the annual interest paid on the certified portion of
THE CREDIT TAKEN CANNOT BE LARGER THAN THE HOME
MORTGAGOR’S ANNUAL FEDERAL IN COME TAX LIABILITY, AFTER DEDUCTIONS,
PERSONAL EXEMPTIONS AND CERTAIN OTHER CREDITS ARE TAKEN INTO ACCOUNT.
An MCC credit in excess of the current year tax liability may be carried forward for use in the subsequent
three years (if the homebuyer still has a federal income tax liability following use of the subsequent year’s
MCC credit). In any case, the amount of the credit will reduce the homebuyer’s home mortgage interest
As an example, you decide to purchase a home for $53,000, and can obtain a $50,000 mortgage at
10% for 30 years. Your interest on the loan for the first year (12 months) would be approximately $5,000.
(The annual interest amount decreases yearly over the life of the mortgage). If you have an MCC