Sponsors
The bill gives targeted financial relief to homeowners who modify their homes for elderly or disabled relatives—partially refundable and capped at $8,000 annually—to support in‑home caregiving, but limits (income phaseouts, cap and nonrefundable portion) and tax interactions (disallowed duplicate deductions and reduced property basis) leave some costs unrecovered and can affect future tax liability.
Homeowners who live with an elderly or disabled relative can claim a tax credit of up to $8,000 per year to offset accessibility and safety modification costs, reducing out-of-pocket spending for home upgrades.
Lower-income eligible taxpayers can receive up to 50% of the allowable credit as refundable, so those with little or no tax liability still get financial benefit.
Households providing in‑home care for a qualifying elderly or disabled relative receive targeted assistance that encourages caregiving at home and may help delay or avoid institutional care.
Homeowners with very large renovation costs may still face significant unreimbursed expenses because the credit is capped at $8,000 per year and only half of the credit is refundable.
Homeowners who claim the credit cannot also claim other deductions/credits for the same expenses, and claiming the credit reduces the property's tax basis, which can increase taxable gain when the home is later sold.
Higher-income taxpayers (MAGI above $200,000 single / $400,000 joint) face a phasedown, limiting or eliminating the credit for some middle- and upper‑middle-income households.
Based on analysis of 2 sections of legislative text.
Creates a partly refundable tax credit (up to $8,000/year) for home accessibility/safety improvements to support an elderly or disabled relative living with the taxpayer.
Creates a new tax credit for homeowners who make safety, mobility, or accessibility improvements so an elderly or disabled relative can live with them. The credit is up to $8,000 per taxpayer per year, is partially refundable (50% refundable), phases out for higher incomes, denies double tax benefits, and becomes effective for tax years starting after December 31, 2026.
Introduced February 13, 2026 by Luz M. Rivas · Last progress February 13, 2026