Bill would establish a tax credit for home modifications that increase safety and accessibility
WASHINGTON, D.C. — U.S. Senators Peter Welch (D-Vt.) and Angus King (I-Maine) recently introduced the Home Accessibility Tax Credit Act, legislation to help prevent dangerous and costly falls. The Senators’ bill would establish a refundable tax credit for eligible home modifications designed to improve accessibility—saving both Americans with the highest risk of falling, as well as taxpayers, from the high medical costs associated with falls. In recent years, Vermont has ranked 49th in the nation for highest fall rates per capita, with over one-third of Vermonters over 65 years old reporting at least one fall in a calendar year.
“Accessible living spaces can make a big difference when it comes to preventing falls–but making structural changes to a home doesn’t come cheap. We need to do more to meet the needs of aging Vermonters, including helping folks pay for lifesaving home modifications that keep them safe,” said Senator Welch. “I’m proud to partner with Senator King on this legislation to ensure New Englanders can live safely in their homes.”
“I often say, ‘an ounce of prevention is worth a pound of cure,’ and the cheapest way to treat a broken hip is to prevent it from happening in the first place,” said Senator King. “The Home Accessibility Tax Credit Act is important legislation that would ease the financial burden of accessibility-focused home improvement projects — such as modifying doorways or installing grab bars. This is a commonsense step forward to help save Maine people from the physical danger and financial costs that can result from all-too-common falls.”
The tax credit would be equal to 35% of the cost of the qualified home modification, with a cap of $10,000 per taxable year and $30,000 in lifetime limit across all taxable years. The tax credit is targeted toward middle income families and will become phased out for higher-earners.
Eligible home modifications would include zero-step entrances, ramps, widened doors and hallways, modified counters, bathroom accessibility improvements, and the installation, replacement, or modification of appliances to make them more accessible to individuals with a vision impairment. The list of approved modifications could be updated by the Internal Revenue Service (IRS) and Health and Human Services (HHS).
Three groups would be eligible to receive the tax credit:
- Individuals 60 and older;
- Individuals under retirement age but entitled to social security disability insurance (SSDI), supplemental security income (SSI) or veterans disability compensation; or
- Individuals at any age with a disability certification.
Read and download the full text of the bill.
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