①The provisions of Articles 41 and 41-2 of the New Act apply in the case where a resident has, on or after the Effective Date, used a house for residential use or an existing house prescribed in Article 41, paragraph (1) of the New Act, or a house on which extension or renovation, etc. has been carried out (limited to the portion pertaining to that extension or renovation, etc.; hereinafter the same applies in this Article), for the resident's own residence as prescribed in that paragraph, and the provisions then in force continue to govern the case where a resident has, before the Effective Date, used a house for residential use or an existing house prescribed in Article 41, paragraph (1) of the Former Act, or a house on which extension or renovation, etc. has been carried out, for the resident's own residence as prescribed in that paragraph.

②In the case referred to in the preceding paragraph, with regard to the application of the provisions of Article 41 and Article 41-2 of the New Act pertaining to extension or renovation, etc. prescribed in Article 41, paragraph (1) of the New Act in the case where the provisions of Article 41, paragraph (1) of the Former Act apply, the phrase "is 20 million yen or less" in that paragraph is deemed to be replaced with "is 20 million yen (if the individual has an amount of borrowings or debts prescribed in Article 41, paragraph (1) of the Act on Special Measures Concerning Taxation prior to the amendment by the Act Partially Amending the Act on Special Measures Concerning Taxation (Act No. 16 of 1991) to which the provisions of that paragraph apply, the amount obtained by deducting the total amount of those borrowings or debts (or 20 million yen, if that total amount exceeds 20 million yen) from 20 million yen; hereinafter the same applies in this paragraph) or less", and the phrase "200,000 yen" with "the amount equivalent to 1 percent of 20 million yen".