H.R. 2749: To amend the Internal Revenue Code of 1986 to provide a refundable credit for certain home accessibility improvements.

This legislation proposes an amendment to the Internal Revenue Code to introduce a refundable tax credit aimed at facilitating home accessibility improvements for certain individuals. Here are the main components:

Refundable Tax Credit

The bill establishes a refundable tax credit of:

• 35% of qualified home accessibility improvement expenditures incurred in a taxable year for a qualified individual.

Expenditure Limits

There are specific limits on the amount of expenditures that can be considered for the credit:

• A maximum of $10,000 per taxable year.
• A lifetime cap of $30,000 across all taxable years.

Income Limitations

The credit may be reduced based on the individual's modified adjusted gross income, with specific threshold amounts and phaseout ranges, which are:

• $400,000 for joint returns or surviving spouses.
• $200,000 for heads of households or single filers.

Qualified Individuals

A "qualified individual" is defined as:

• An individual entitled to certain benefits due to blindness or disability.
• An individual with a filed disability certification.
• An individual who is 60 years of age or older.
• The spouse or dependent of an eligible qualified individual living in the same residence.

Qualified Home Accessibility Improvement Expenditures

Expenditures that qualify for the credit include, but are not limited to:

• Installation of entrance/exit ramps.
• Modification of bathrooms for accessibility (e.g., curbless showers).
• Widening doorways or hallways.
• Adding features like handrails and grab bars.
• Installation of assistive technologies.
• Installation of non-slip flooring.
• Modifying appliances for accessibility.
• Adding full bathrooms or bedrooms on the main floor.
• Other modifications deemed necessary for enhancing safety and independence.

Implementation and Oversight

The bill requires the Secretary of the Treasury to issue guidance within 180 days after the enactment, which will define eligible modifications and ensure accessibility to information regarding the credit. It also includes outreach strategies to inform the public about the credit.

Study and Reporting

Additionally, a study will be conducted to evaluate the effectiveness of the tax credit, assessing its impact on:

• Reduction in emergency visits and hospitalizations.
• Medicare expenditures.
• Improvements in daily living activities and reductions in depression symptoms.

A report on the findings of this study is to be submitted to relevant legislative committees within three years of the bill’s enactment.

Effective Date

The provisions of this bill would apply to taxable years beginning after December 31, 2024.

Relevant Companies

None found