housing tax credit successfully provides 100,000 units of affordable housing every year. (11) Every tax reform commission has recommended capping the mortgage interest deduction and converting it to a fairer and simpler credit. (12) More than 75 percent of the value of the mortgage interest deduction inures to the benefit of the top 20 percent of earners. (13) Fewer than half of tax filers with a home mortgage claim the mortgage interest deduction. (14) Only 9 percent of rural tax filers claim the mortgage interest deduction. (15) Ninety-six percent of homes sold between 2005 and 2011 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. 502. 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