In this thesis, we develop the a new immersed finite element(IFE) space formed by piecewise linear polynomials defined on sub-elements cut by the actual interface curve for solving elliptic interface problems on interface independent meshes. A group of geometric identities and estimates on interface elements are derived. Based on these geometric identities and estimates, we establish a multi-point Taylor expansion of the true solutions and show the estimates for the second order terms in the expansion. Then, we construct the local IFE spaces by imposing the weak jump conditions and nodal value conditions on the piecewise polynomials. The unisolvence of the IFE shape functions is proven by the invertibility of the well-known Sherman-Morrison system. Furthermore we derive a group of fundamental identities about the IFE shape functions, which show that the two polynomial components in an IFE shape function are highly related. Finally we employ these fundamental identities and the multi-point Taylor expansion to derive the estimates for IFE interpolation errors in L2 and semi-H1 norms. / Master of Science