Sponsor
The bill provides targeted tax relief to help homeowners make accessibility and safety modifications so elderly or disabled relatives can remain at home, but the benefit is limited by an $8,000 cap, only partial refundability, income phase‑downs, and offsets that can raise future tax liabilities.
Homeowners who live with an elderly or disabled relative can claim a tax credit of up to $8,000 per year for home accessibility and safety modifications, reducing out-of-pocket renovation costs.
Eligible low‑income taxpayers can receive up to half of the allowable credit as refundable, so households with low tax liability still get meaningful financial support.
Families supporting a qualifying elderly or disabled relative living in the same home gain targeted assistance that encourages in‑place caregiving and may delay or reduce the need for institutional care.
Households with large accessibility or safety renovation costs may still face substantial unreimbursed expenses because the credit is capped at $8,000 per year and only half is potentially refundable.
Claiming the credit disallows claiming other deductions or credits for the same expenses and reduces the property's basis, which can increase future taxable gain when the home is sold.
Taxpayers with modified adjusted gross income above $200,000 (single) or $400,000 (joint) face a phase‑down that limits or eliminates the credit for higher‑income households.
Based on analysis of 2 sections of legislative text.
Adds IRC §25G: a tax credit (up to $8,000/year, 50% refundable) for home accessibility/safety improvements to house an elderly or disabled relative, with income phaseouts.
Representative · D-CA
Official title: To amend the Internal Revenue Code of 1986 to allow a credit against tax for qualified multigenerational housing expenses, and for other purposes.
Introduced February 13, 2026 by Luz M. Rivas · Last progress February 13, 2026
Creates a new federal tax credit for homeowners who make accessibility, safety, or mobility improvements to their primary residence so an elderly or disabled relative can live with them. The credit is capped at $8,000 per taxpayer per year, phases out for higher-income taxpayers, and 50% of the allowable credit is refundable. The credit applies to defined "qualified multigenerational housing expenses," denies a double tax benefit, requires basis reduction for amounts claimed, is indexed for inflation after 2027, and takes effect for tax years beginning after December 31, 2026.