Senior Accessible Housing Tax Credit

Summary#

This bill creates a new federal tax credit called the Senior Accessible Housing Credit. The credit pays an eligible individual an amount equal to their qualified accessible housing expenses for the taxable year, up to a dollar limit. An eligible individual is someone who is at least 60 years old before the end of the tax year and is not a nonresident alien. For married couples filing jointly, the credit can be claimed if at least one spouse is 60 and neither spouse is a nonresident alien.

Qualified accessible housing expenses are costs for modifications to a taxpayer's qualified residence to help an older adult live safely and independently. The bill lists examples: installing wheelchair ramps, widening doorways, handrails or grab bars, non-slip flooring, bathtub cuts or shower seats, furniture risers, chair lifts, replacing toilets, bathroom vanities, and faucets. The Secretary of the Treasury, in consultation with the Secretary of Health and Human Services, may also identify other qualifying modifications. Labor costs for on-site preparation and original installation are included.

A qualified residence means a dwelling in the United States that the taxpayer uses as their principal residence or a qualified second home. The credit cannot exceed $10,000 per taxpayer per year (subject to indexing after 2027). The credit is reduced by $1 for each $2 (or fraction) the taxpayer's modified adjusted gross income exceeds specified threshold amounts ($200,000 for joint filers or surviving spouses, $150,000 for heads of household, $100,000 for other filers). If a taxpayer uses expenses for this credit, they cannot take another credit or deduction for the same expense, and the basis of property must be reduced by the amount of the credit taken. The Secretary must issue regulations or guidance to implement the section. The tax credit provisions apply to taxable years beginning after December 31, 2026.

The bill also authorizes appropriations of $100,000,000 for each fiscal year 2027 through 2031 to the Department of Housing and Urban Development for the Older Adult Home Modification Grant Program established in Public Law 119-75.

What it means for you#

• If you are age 60 or older and pay for eligible home modifications, you may be able to claim a tax credit equal to those expenses, up to the annual limit.
• Married couples filing jointly can claim the credit if at least one spouse is 60 and neither spouse is a nonresident alien.
• The credit applies to a main home or certain second homes located in the United States.
• The credit is limited to $10,000 for a tax year and may be reduced if your income is above the listed thresholds.
• If you already use the same expense for another tax credit or deduction, you cannot get a second benefit for it.
• The credit starts for tax years beginning after December 31, 2026.
• HUD would receive authorized funding for a separate older-adult home modification grant program for fiscal years 2027–2031.

Expenses#

• Tax credit dollar cap: $10,000 per taxpayer per taxable year (amounts in subsection (d) are indexed for inflation for tax years after 2027).
• Income phaseout thresholds: $200,000 for joint/surviving spouse filers, $150,000 for heads of household, $100,000 for other filers (thresholds are subject to the same indexing).
• HUD appropriations authorized: $100,000,000 per fiscal year for each of 2027 through 2031 for the Older Adult Home Modification Grant Program (as referenced to Public Law 119-75).

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.