S. 1315: To amend the Internal Revenue Code of 1986 to provide a refundable credit for certain home accessibility improvements.

The bill, identified as S. 1315, is proposed legislation aimed at amending the Internal Revenue Code of 1986 to establish a refundable tax credit for certain home accessibility improvements. Here’s a breakdown of what the bill entails:

1. Refundable Tax Credit for Home Accessibility Improvements

The bill proposes a tax credit for individuals who make qualified home accessibility improvements to their principal residence. The main aspects include:

• Credit Amount: Individuals can receive a tax credit equal to 35% of the qualified expenditures made for home improvements.
• Annual Limitation: The credit can be claimed for up to $10,000 in qualified expenditures per taxable year, with a lifetime cap of $30,000.
• Income Limits: The credit gradually decreases for individuals with modified adjusted gross incomes over certain thresholds. For example, the threshold is $400,000 for joint filers, and $200,000 for single filers and heads of household.

2. Qualified Individuals

To qualify for the credit, the individual must meet specific criteria, including:

• Being diagnosed with a disability or being blind and receiving certain benefits.
• Having a disability certification filed with the Secretary of the Treasury.
• Reaching the age of 60.
• The individual’s spouse or dependents may also qualify if they meet similar criteria.

3. Qualified Home Accessibility Improvement Expenditures

The bill outlines what constitutes "qualified improvement expenditures," which include:

• Installation of ramps for no-step entries.
• Modification of bathrooms to improve accessibility.
• Widening of doorways and hallways.
• Installing grab bars and handrails.
• Improving lighting and installing non-slip flooring.
• Adding bedrooms or bathrooms on the main floor.
• Installation or modification of assistive technologies.

4. Regulatory and Guidance Provisions

The Secretary of the Treasury is tasked with:

• Issuing regulations to specify eligible improvements within 180 days of the bill's enactment.
• Conducting outreach to inform the public about the credit and its accessibility.
• Maintaining a list of modifications that meet the qualifying criteria.

5. Special Considerations

• The dollar amounts in the bill will be adjusted for inflation starting from the 2025 tax year.
• The bill prohibits claiming costs for the same expenditure towards another tax benefit in the same year.
• Married individuals filing separately are not eligible for the credit.

6. Study and Reporting Requirements

Within three years of enactment, the Comptroller General must conduct a study assessing the effectiveness of the tax credit in enhancing accessibility within homes and improving the living conditions of qualified individuals. This includes analyzing:

• Residential units served by the program.
• Impact on emergency visits, hospital stays, and Medicare costs.
• Recommendations for improving the credit and its accessibility.

7. Effective Date

The amendments proposed in this bill will take effect for taxable years beginning after December 31, 2024.

Relevant Companies

• PHM (PulteGroup, Inc.): This company may see an increase in demand for construction services related to home modifications that enhance accessibility.
• TOL (Toll Brothers, Inc.): As a home builder, the firm could be directly affected through an increase in requests for accessible housing options.
• HD (The Home Depot, Inc.): The bill could lead to increased sales for home improvement products needed to make homes more accessible.
• LOW (Lowe's Companies, Inc.): Similar to Home Depot, Lowe's may benefit from the demand for products related to accessibility renovations.