Mortgage Credit Certificate
Definition
A Mortgage Credit Certificate, or MCC, can provide a federal tax credit for part of the mortgage interest paid on a qualifying home loan. It is administered through a state or local housing-finance issuer. It is not down-payment assistance and not tax advice.
In plain English
Some first-time buyers receive an MCC instead of, or alongside, other local help. The certificate can turn part of the mortgage interest into a tax credit. Credit rates, income limits, and recapture rules change. This page names the mechanism. It does not publish current figures.
Technical definition
IRS About Form 8396 is PRIMARY for the mortgage interest credit available to MCC holders. IRS Topic 505 is supporting program context.
Why it matters
Shoppers mix MCC, bond-financed mortgages, and cash assistance. The credit is a tax item, not cash at the closing table.
Related terms
Sources reviewed
About Form 8396, Mortgage Interest Credit
ObservedSeptember 7, 2026
Topic No. 505, Interest Expense
ObservedSeptember 7, 2026
Important note
An MCC can provide a federal tax credit for part of mortgage interest. Credit rates, income limits, and recapture rules are current-authority values and are not listed. This is not tax advice.