mortgage claim the mortgage interest deduction. (14) Only 9 percent of rural tax filers claim the mortgage interest deduction. (15) Ninety-four percent of homes sold between 2013 and 2015 sold for less than $500,000. (16) A better approach that provides equitable benefits for families who buy homes, enables more low- and moderate-income homeowners to receive a benefit, and invests in affordable rental housing to assist those who used to be homeless or who have extremely or very low incomes is needed to strengthen families and communities. 3. Replacement of mortgage interest deduction with mortgage interest credit (a) Nonrefundable credit Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25D the following new section: 25E. Interest on indebtedness secured by qualified residence (a) Allowance of credit In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 15 percent of the qualified residence interest paid or accrued during the taxable year. (b) Qualified residence interest For purposes of this section— (1) In general The term qualified residence interest means interest which is paid or accrued during the taxable year on— (A) acquisition indebtedness with respect to any qualified residence of the taxpayer, or (B) home equity indebtedness with respect to any qualified residence of the taxpayer. For purposes of the preceding sentence, the determination of whether any property is a qualified residence of the taxpayer shall be made as of the time the interest is accrued. (2) Overall limitation The aggregate amount of indebtedness taken into account for any period for purposes of this section shall not exceed $500,000 ($250,000 in the case of a married individual filing a separate return or unmarried individuals filing separate returns for the same property). (3) Acquisition indebtedness The term acquisition