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Current MCC Holder?

For homeowners who currently hold a Mortgage Credit Certificate

Mortgage Credit Certificates (MCC) provide holders with an annual tax benefit in the form of a credit up to 20% of the qualified interest paid over the course of the year. While VHFA and your lender assisted you in obtaining your MCC, we cannot provide you with tax advice.  Please consult with a tax professional to determine how to apply your MCC to your taxes on an annual basis.

How long is my MCC valid for?

Your MCC can be used annually as long as the following items remain true:

  • You and the other holders of the MCC occupy the property as your primary residence.
  • The original mortgage loan that you used to purchase the property that was associated with your MCC is still in place. That means you have not refinanced your loan, sold the property, or otherwise disposed of your original mortgage connected to the MCC. 

Using an MCC on your taxes

A tax professional can help you use your MCC on your taxes. Generally, you need to remember that the MCC must be applied each year you intend to use it on your taxes. The MCC benefit does not automatically appear. At a minimum, you will need to file IRS Form 8396 each year you intend to utilize the MCC. The Form 8396 and additional information about MCCs are available at the IRS website.