A Minnesota lawmaker wants to revamp the mortgage interest deduction so that more homeowners would receive the tax break and then use the anticipated savings to invest in low- and moderate-income housing.

As it stands, borrowers can deduct the interest on the first $1.1 million of a home loan, but under a bill Rep. Keith Ellison, a Democrat, introduced Friday that cap would be lowered to $500,000. His proposal would completely convert the mortgage deduction to a 15% tax credit for all homeowners with a mortgage. The deduction would be phased in over five years and potentially would raise $196 billion.

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