A proposed bill aims to provide refundable tax credits for families making safety and accessibility upgrades to their homes for aging or disabled relatives. The Multigenerational Family Tax Credit Act of 2026 would cover 50% of eligible expenditures up to $8,000 annually, with income limitations.
This proposed legislation could offer significant financial relief to families investing in home modifications for elderly or disabled relatives, potentially making multigenerational living more feasible and reducing the cost burden of essential accessibility upgrades.
A proposed bill in the U.S. House of Representatives aims to alleviate the financial burden on families undertaking home modifications to accommodate aging or disabled relatives. Introduced by Congresswoman Luz Rivas (CA-29), the Multigenerational Family Tax Credit Act of 2026 seeks to provide a significant tax incentive for such upgrades.
The legislation proposes a refundable tax credit equivalent to 50% of eligible expenditures, with an annual cap of $8,000 per taxable year. These expenditures are defined as those related to improving the safety, mobility, or accessibility of a taxpayer's principal residence. Examples include the installation of grab rails, the construction of an additional bedroom, or the addition of a lift to assist with stair navigation.
To qualify for the credit, the recipient of the accessibility improvements must be a relative aged 65 or older, or an individual with a disability, who resides with the taxpayer. The bill also includes income limitations, with a modified adjusted gross income (MAGI) cap of $200,000 for individual filers and $400,000 for those filing jointly. For incomes exceeding these thresholds, the credit is reduced by $50 for every $1,000 over the cap.
The bill directs the Treasury Secretary to develop regulations and guidance to facilitate the implementation of this tax credit. This initiative is presented as a measure to support multigenerational households facing affordability challenges.