Senior accessible housing tax credit

(a)

In general

Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25F the following new section:

25G.

Senior accessible housing credit

(a)

In general

In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the aggregate amount of qualified accessible housing expenses paid or incurred by the taxpayer during such taxable year. (b)

Eligible individual

(1)

In general

For purposes of this section, the term eligible individual means any individual who— (A)has attained age 60 before the close of the taxable year, and (B)is not a nonresident alien. (2)

Special rule for joint returns

In the case of a married couple filing a joint return for the taxable year, credit under this section shall be allowed— (A)if at least 1 spouse has attained age 60 before the close of the taxable year, and (B)only if neither spouse is a nonresident alien. (c)

Qualified accessible housing expenses

(1)

In general

For purposes of this section, the term qualified accessible housing expenses means, with respect to a taxpayer, any expenses which are related to making any of the following modifications to a qualified residence of such taxpayer: (A)Installing wheelchair ramps. (B)Widening doorways. (C)Installing handrails or grab bars. (D)Installing non-slip flooring. (E)Installing bathtub cuts or shower seats. (F)Installing furniture risers. (G)Installing chair lifts. (H)Replacing toilets. (I)Replacing bathroom vanities. (J)Replacing kitchen or bathroom faucets. (K)Any other modification which the Secretary, in consultation with the Secretary of Health and Human Services, determines would improve an eligible individual’s ability to live safely and independently.

Such term includes any expenses for labor costs properly allocable to the onsite preparation, assembly, or original installation of property described in this paragraph, including any property allowed pursuant to subparagraph (K).

(2)

Qualified residence

(A)

In general

For purposes of paragraph (1), the term qualified residence means any dwelling unit located in the United States and owned or used by the taxpayer as the principal residence (within the meaning of section 121), or qualified second home, of such taxpayer. (B)

Qualified second home

For purposes of this paragraph, the term qualified second home means a residence within the meaning of section 163(h)(5)(A)(i)(II). (d)

Limitations

(1)

Dollar limitation

The credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed $10,000. (2)

Limitation based on modified adjusted gross income

(A)

In general

The amount of the credit allowed under subsection (a) for any taxable year shall be reduced (but not below zero) by $1 for each $2 (or fraction thereof) by which the taxpayer’s modified adjusted gross income exceeds the threshold amount. For purposes of the preceding sentence, the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. (B)

Threshold amount

For purposes of subparagraph (A), the term threshold amount means— (i)$200,000 in the case of a joint return or a surviving spouse (as defined in section 2(a)), (ii)$150,000 in the case of a head of household (as defined in section 2(b)), and (iii)$100,000 in the case of a taxpayer not described in clause (i) or (ii). (e)

Denial of double benefit

In the case of any qualified accessible housing expenses with respect to which credit is allowed under subsection (a)— (1)no other credit or deduction shall be allowed for, or by reason of, any such expense to the extent of the amount of such credit, and (2)the basis of any property shall be reduced by the amount of such credit to the extent that such expenses were taken into account in determining such basis. (f)

Inflation adjustment

In the case of any taxable year beginning after 2027, each dollar amount in subsection (d) shall be increased by an amount equal to— (1)such dollar amount, multiplied by (2)the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2026 for calendar year 2016 in subparagraph (A)(ii) thereof.

If any increase under the preceding sentence is not a multiple of $1, such amount shall be rounded to the nearest multiple of $1.

(g)

Regulations

The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section.

(b)

Clerical amendment

The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25F the following new item:

Sec. 25G. Senior accessible housing credit.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2026.