This bill creates a new federal tax credit for families who make home modifications to accommodate aging or disabled relatives. Taxpayers can claim up to $8,000 per year in expenses that improve safety, mobility, or accessibility of their home for a qualified relative—defined as a parent, grandparent, sibling, in-law, or other specified family member who is either 65 or older, disabled, and living in the home for at least half the year. The credit phases out for higher earners, reducing by $50 for each $1,000 of income over $200,000 ($400,000 for joint filers), and half of the credit is refundable, meaning taxpayers can receive a partial refund even if they owe no taxes. The credit takes effect for tax years beginning after December 31, 2026, and the maximum amount will be adjusted annually for inflation after 2027. Taxpayers cannot claim the same home improvement expenses under other deductions or credits.
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