Summary of HR 2749: Home Accessibility Improvements Tax Credit

Bill Number: HR 2749

Introduced: April 08, 2025

Status: Sponsor introductory remarks on measure (CR H1498)

Related Bill: S 1315 (companion)

Purpose and Intent

HR 2749 aims to amend the Internal Revenue Code of 1986 by establishing a refundable tax credit for individuals who make certain home accessibility improvements. The intent of this legislation is to enhance the living conditions of individuals with disabilities or age-related limitations, thereby promoting their independence and safety within their homes.

Key Provisions

Tax Credit Details

• Credit Rate: Individuals can claim a credit equal to 35% of qualified home accessibility improvement expenditures.
• Annual Limit: The credit is capped at $10,000 per taxable year.
• Lifetime Limit: A maximum of $30,000 can be claimed over all taxable years.

Income Phaseout

• The credit amount is subject to a phaseout based on modified adjusted gross income (MAGI):
  • Joint Return or Surviving Spouse: Phaseout begins at $400,000; reduced by $100,000.
  • Head of Household: Phaseout begins at $200,000; reduced by $75,000.
  • Other Filers: Phaseout begins at $200,000; reduced by $50,000.

Qualified Individuals

• The credit is available to individuals who:
  • Are entitled to pension benefits due to blindness or disability.
  • Have a disability certification from a physician.
  • Are aged 60 or older.
• Spouses and dependents of qualified individuals are also eligible if they meet the criteria.

Qualified Home Accessibility Improvements

Improvements that qualify for the credit include, but are not limited to:
- Installation of ramps and modifications for no-step entries.
- Bathroom modifications (e.g., grab bars, curbless showers).
- Widening doorways and hallways.
- Installation of assistive technologies and adaptive fire alarms.
- Other modifications that enhance accessibility as determined by the Secretary of the Treasury.

Cost-of-Living Adjustments

• Starting in 2026, the dollar limits for the credit will be adjusted annually based on the cost-of-living index.

Additional Requirements

• Taxpayers must provide substantiation of eligibility and credit amount as required by the Secretary.
• Expenditures claimed for this credit cannot be applied to other tax benefits in the same year.

Impact

This legislation is expected to benefit individuals with disabilities and older adults by providing financial assistance for necessary home modifications. By making homes more accessible, the bill aims to support independent living and improve the quality of life for these populations.

Procedural Timeline

• April 08, 2025: The bill was introduced and referred to the House Committee on Ways and Means.

This summary provides an overview of HR 2749, detailing its purpose, key provisions, and potential impact on individuals needing home accessibility improvements.