To amend the Internal Revenue Code of 1986 to provide a refundable credit for certain home accessibility improvements.
- Bill Number
- H.R. 2749
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-04-08: Referred to the House Committee on Ways and Means.
- Last Updated
- 2025-12-05T22:52:10Z
AI-Generated Summary
Purpose
This legislation aims to encourage home modifications that improve accessibility for individuals with disabilities, blindness, or those aged 60 and older by providing a refundable tax credit. A refundable credit means taxpayers can receive it as a payment even if they owe no taxes. The goal is to help these individuals live safely and independently at home, potentially reducing reliance on institutional care.
Key Provisions
- Credit Amount and Eligibility:
- Offers a 35% credit on qualified home accessibility improvement expenditures.
- Annual limit: $10,000 in expenditures (up to $3,500 credit per year).
- Lifetime limit: $30,000 in expenditures (up to $10,500 total credit).
- Applies to the taxpayer's principal residence (main home).
- Income Phaseout:
- Credit reduces for higher earners and phases out completely above certain thresholds.
- Thresholds: $400,000 for joint filers or surviving spouses; $200,000 for heads of household or single filers.
- Phaseout range: $100,000 for joint filers; $75,000 for heads of household; $50,000 for others.
- Based on modified adjusted gross income (AGI without certain foreign income exclusions).
- Qualified Individuals:
- Includes the taxpayer, spouse, or dependent who:
- Receives disability or blindness benefits under Social Security (Titles II or XVI), Veterans Affairs pensions, or has a physician-certified disability (lasting at least 12 months or expected to lead to death).
- Is age 60 or older by year-end.
- They must share the same home.
- Disability certification requires a doctor's statement with diagnosis; it cannot be used for other benefit claims.
- Qualified Improvements:
- Covers costs for modifications like:
- Ramps, no-step entries, or ground grading.
- Handrails, grab bars, curbless showers, roll-under sinks.
- Widening doorways/hallways, modifying stairs/doors.
- Bathroom upgrades, accessible appliances, assistive tech (e.g., remote health monitoring).
- Adding main-floor bedroom/bathroom, lifts, adaptive alarms, non-slip flooring, bright lighting, relocated laundry.
- Secretary of the Treasury, with input from Housing and Urban Development, Health and Human Services, and public (including seniors and disability groups), will maintain and update an expanded list of eligible modifications every two years.
- Special Rules:
- Inflation adjustment starting in 2026 for limits and phaseouts (rounded to nearest $50).
- Requires proof of eligibility and expenditures.
- Prevents double-dipping: Expenditures cannot claim multiple tax benefits in the same year.
- No credit for married individuals filing separately.
- Implementation:
- Effective for tax years beginning after December 31, 2024.
- Treasury must issue guidance within 180 days and make it public.
- IRS to maximize public access to the credit and conduct outreach.
- Social Security and Veterans Affairs to share data with Treasury for administration.
- GAO Study:
- Government Accountability Office (GAO) to evaluate the credit's effectiveness (e.g., homes improved, health outcomes, Medicare savings) within 3 years.
- Report to Congress with recommendations, including inflation adjustments, extending to renters/landlords/builders, and alternative policies to boost accessible housing.
Significant Changes to Existing Law
- Adds a new Section 36C to the Internal Revenue Code (under refundable credits like child tax credit).
- Updates related code sections for overpayment definitions and tax table listings.
- Introduces the first dedicated federal tax incentive specifically for broad home accessibility mods targeted at seniors and disabled individuals, building on but expanding prior energy-efficient home credits (e.g., no prior lifetime cap or disability focus).
Potential Impacts
- On Citizens: Lowers costs for home modifications, enabling aging in place or independent living for ~50 million Americans with disabilities or seniors, potentially cutting emergency visits, hospitalizations, and long-term care expenses (e.g., Medicare savings estimated indirectly via GAO study).
- On Government Agencies: Increases IRS administrative workload for claims, verifications, and outreach; requires inter-agency coordination (Treasury, IRS, SSA, VA, HUD, HHS). GAO report may lead to future policy tweaks. No direct international relations impact.
- Broader Effects: Could stimulate demand for accessibility products/services, benefiting construction and tech sectors, while promoting equity in housing.
Main Stakeholders Affected
- Primary Beneficiaries: Individuals with disabilities/blindness (including veterans and Social Security recipients), seniors aged 60+, and their spouses/dependents—especially middle-income households facing high mod costs ($5,000–$50,000 per project).
- Taxpayers and Families: Homeowners claiming the credit; excludes renters unless extended later.
- Government Entities: IRS (processing claims/outreach), Treasury (guidance/list maintenance), SSA/VA (data sharing), HUD/HHS (consultation), GAO (oversight).
- Others: Disability/senior advocacy groups, home builders/contractors, healthcare providers (via potential reduced utilization), and Medicare/Medicaid programs.
Notable Legal, Constitutional, or Political Implications
- Legal: Amends tax code without altering benefit eligibility rules; disability certifications protect against misuse for other programs. Requires substantiation to prevent fraud, aligning with IRS standards.
- Constitutional: Neutral; supports equal protection by aiding vulnerable groups without infringing rights.
- Political: Advances disability rights and aging policies (e.g., aligns with Americans with Disabilities Act goals), potentially bipartisan appeal for cost-saving measures. May spark debates on credit scope (e.g., renters, new builds) or fiscal impact (estimated revenue loss via reduced taxes). GAO report ensures evidence-based evaluation for future legislation.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Stevens, Haley M. [D-MI-11]
Recent Actions
- 2025-04-08: Referred to the House Committee on Ways and Means.
- 2025-04-08: Introduced in House
- 2025-04-08: Sponsor introductory remarks on measure. (CR H1498)
- 2025-04-08: Introduced in House
Bill Versions
- To amend the Internal Revenue Code of 1986 to provide a refundable credit for certain home accessibility improvements. — issued 2025-04-08 — PDF (14 pages)