<p>According to our HELOC, all interest is tax-deductible. There is no delineation between money withdrawn for home improvements or any other expenses. And I feel it is better to have fewer loans/ lines of credit than to take out a plus loan and use a Heloc as a backup to pay for the plus in case of emergency. But again, we are just at the start of this whole horrible process and I am open to anything that works.</p>