Sponsors (2)
The bill makes home accessibility improvements substantially more affordable for seniors and people with disabilities and supports aging in place, but important limits — nonrefundability, annual/lifetime caps, income phaseouts, and documentation requirements — leave many lower‑income and higher‑cost cases unable to fully benefit.
People with disabilities and older homeowners can claim a tax credit equal to 35% of qualifying home accessibility modifications (up to $10,000/year and $30,000 lifetime), lowering their out-of-pocket costs for ramps, bathroom changes, lifts, lighting, and similar work.
Qualified individuals (seniors and people with disabilities) are likely to be able to remain in their homes and age or live independently longer because affordability of safety and accessibility improvements is increased.
Low- and middle-income qualifying taxpayers receive targeted relief through income phaseout thresholds and inflation adjustments, helping preserve the credit's value for lower-resourced households over time.
Low-income taxpayers and those with little or no federal tax liability cannot fully benefit because the credit is nonrefundable, leaving them to cover much of the cost themselves.
The annual ($10,000) and lifetime ($30,000) caps are likely insufficient for extensive renovations, forcing homeowners to pay substantial remaining costs for major accessibility projects.
Income phaseouts exclude higher‑income households that may still face large renovation costs, limiting help for some middle-income families.
Based on analysis of 2 sections of legislative text.
Creates a new tax credit covering 35% of qualifying home accessibility improvements, up to $10,000/year and $30,000 lifetime, with income phaseouts.
Official title: Amend the Internal Revenue Code of 1986 to provide a refundable credit for certain home accessibility improvements.
Introduced April 7, 2025 by Angus Stanley King · Last progress April 7, 2025
Creates a new individual tax credit (new 26 U.S.C. §36C) that covers 35% of qualifying home accessibility improvement expenses for eligible people — up to $10,000 per year and $30,000 lifetime. The credit targets older adults, people with disabilities (including those with certain VA or Social Security benefits or a physician "disability certification"), and their spouses/dependents who share a home, and phases out for higher-income taxpayers.