A bill to amend the Internal Revenue Code of 1986 to provide a refundable credit for certain home accessibility improvements.
- Bill Number
- S. 1315
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-04-07: Read twice and referred to the Committee on Finance.
- Last Updated
- 2025-12-05T22:51:51Z
AI-Generated Summary
Purpose
This legislation, S. 1315, aims to help individuals with disabilities or those aged 60 and older (and their spouses or dependents) afford modifications to their homes that improve accessibility. By providing a refundable tax credit, it encourages "aging in place" or independent living at home, reducing reliance on institutional care.
Key Provisions
- Tax Credit Details: Eligible taxpayers can claim a refundable credit equal to 35% of qualified home accessibility improvement costs.
- Annual limit: Up to $10,000 in expenses per tax year (resulting in a maximum credit of $3,500 per year).
- Lifetime limit: Up to $30,000 in total expenses across all years.
- The credit is refundable, meaning it can result in a payment from the government even if the taxpayer owes no taxes.
- Income Phaseout: The credit reduces for higher earners and phases out completely above certain income thresholds (based on modified adjusted gross income, which is basically total income after certain deductions).
- Thresholds: Starts phasing out at $400,000 for married couples filing jointly or surviving spouses; $200,000 for heads of household or single filers.
- Phaseout range: Full reduction over $100,000 for joint filers, $75,000 for heads of household, or $50,000 for others.
- Qualified Individuals: The credit applies to improvements benefiting:
- The taxpayer, if they are blind or disabled (e.g., receiving Social Security disability benefits, veterans' pension for disability, or certified by a doctor as having a severe impairment lasting at least 12 months or blindness).
- The taxpayer if they turn 60 by year-end.
- Spouses or dependents who meet the same criteria and live in the same home.
- Disability certification requires a doctor's statement with diagnosis; it cannot be used to claim other government benefits like Social Security.
- Qualified Improvements: Covers reasonable costs for modifications to the taxpayer's main home to enhance accessibility, including:
- Ramps for no-step entry, handrails, grab bars, widened doorways/hallways, modified stairs/doors.
- Bathroom changes like curbless showers or roll-under sinks; counter modifications.
- Appliance adaptations for vision impairments, remote health monitoring tech.
- Adding a main-floor bedroom/bathroom, lifts, adaptive alarms/detectors, non-slip flooring, bright lighting, relocated laundry.
- Other items on a list maintained by the Treasury Secretary (developed with input from housing, health, and disability experts).
- Special Rules:
- Amounts adjust for inflation starting in 2026 (rounded to nearest $50).
- Taxpayers must provide proof (e.g., receipts, certifications) to claim the credit.
- No double-dipping: Expenses used here cannot qualify for other tax breaks in the same year.
- Married individuals filing separately get no credit.
- Implementation:
- Effective for tax years starting after December 31, 2024.
- Treasury must issue guidance within 180 days, including an initial list of improvements, updated every two years.
- IRS must make the credit easy to access and run public outreach.
- Social Security Administration and Veterans Affairs must share data to verify eligibility.
- GAO Study: Within three years, the Government Accountability Office (GAO) will study the credit's effectiveness (e.g., on health outcomes, Medicare savings, independent living) and report to Congress with recommendations, such as expanding to renters or builders. The report will be public.
Significant Changes to Existing Law
- Adds a new Section 36C to the Internal Revenue Code (under credits for individuals), creating this first-of-its-kind refundable credit specifically for home accessibility.
- Updates related tax code sections to include this credit in definitions of overpayments (for refunds) and certain government payment rules.
- No direct changes to existing disability or housing laws, but it introduces coordination between tax, Social Security, veterans, and health agencies for eligibility verification and list development.
Potential Impacts
- On Citizens: Low- and middle-income seniors and people with disabilities may save thousands on home modifications, promoting safer, independent living at home. This could reduce falls, hospital visits, and nursing home needs, potentially lowering personal healthcare costs and improving quality of life.
- On Government Agencies: IRS handles claims, outreach, and accessibility efforts, increasing administrative workload but with data-sharing support from Social Security and Veterans Affairs. Treasury, HUD, and HHS collaborate on guidelines. GAO's study may lead to future policy tweaks. Overall, it could cut long-term Medicare/Social Security spending by preventing health declines.
- On International Relations: None apparent; this is a domestic tax policy focused on U.S. residents.
Main Stakeholders Affected
- Individuals and Families: Seniors (age 60+), people with disabilities (including blind individuals), their spouses/dependents—especially lower-income homeowners seeking to modify principal residences.
- Healthcare and Service Providers: Doctors (for certifications), contractors/builders (for installations), and organizations for seniors/disabilities (input on improvement lists and outreach).
- Government Entities: IRS (administration), Treasury (guidance), Social Security/Veterans Affairs (data), HUD/HHS (consultation), and Congress/GAO (oversight and evaluation).
- Broader Groups: Homeowners' associations, technology firms (e.g., assistive devices), and potentially renters/landlords if future expansions occur per GAO recommendations.
Notable Legal, Constitutional, or Political Implications
- Legal: Establishes clear eligibility rules to prevent fraud (e.g., required substantiations and certifications), while protecting privacy by limiting certification use to this credit only. Refundable nature ensures equity for low-income non-filers, aligning with tax code precedents for social benefits.
- Constitutional: No evident issues; it supports equal protection by aiding vulnerable groups without discriminating by state or class. Promotes general welfare through accessible housing.
- Political: Introduced bipartisans across party lines (by Sens. King, I-ME, and Welch, D-VT), signaling broad support for disability and aging policies. The GAO study could influence future budgets or expansions (e.g., to new construction), potentially sparking debates on tax expenditures versus direct spending. It fits into trends like the Americans with Disabilities Act by incentivizing private-sector accessibility without mandates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Sen. King, Angus S., Jr. [I-ME]
Cosponsors (1)
Recent Actions
- 2025-04-07: Read twice and referred to the Committee on Finance.
- 2025-04-07: Introduced in Senate
Bill Versions
- To amend the Internal Revenue Code of 1986 to provide a refundable credit for certain home accessibility improvements. — issued 2025-04-07 — PDF (14 pages)