Key facts
- A Senate bill, the Senior Accessible Housing Tax Credit Act, has been introduced.
- The legislation would offer a nonrefundable tax credit up to $10,000 for home modifications.
- Eligibility is for individuals aged 60 and older, with income limitations.
- Qualifying expenses include labor costs for installing accessibility features.
- The bill aims to help seniors age in place without incurring debt or depleting savings.
A proposed Senate bill aims to assist senior homeowners in making their residences more accessible for aging in place by offering a tax credit for necessary home modifications. Introduced by Senator Kirsten Gillibrand (D-N.Y.) on August 6, the Senior Accessible Housing Tax Credit Act would provide a nonrefundable tax credit to Americans aged 60 and older for specific modifications to their primary residences and qualifying second homes.
The legislation, co-sponsored by Senator Angela Alsobrooks (D-Md.), would allow for a credit equal to the cost of eligible expenses, capped at $10,000. This includes labor costs associated with the installation of features such as wheelchair ramps, handrails, chair lifts, and shower seats. A companion bill was introduced in the House by Representative George Latimer (D-N.Y.) in late June.
According to Gillibrand's office, citing U.S. Census Bureau data, approximately one in four Americans are projected to be 65 or older by 2060. Current data from the CDC indicates that about 44% of individuals aged 65 and older have a disability. However, estimates from the Joint Center for Housing Studies at Harvard University suggest that only about 4% of the U.S. housing stock is designed to accommodate individuals with disabilities.
Senator Gillibrand also recently introduced the Visitable Inclusive Tax Credits for Accessible Living (VITAL) Act, which seeks to expand the Low-Income Housing Tax Credit (LIHTC) program to support the construction of affordable housing with accessibility features. This bill is co-sponsored by Senator Amy Klobuchar (D-Minn.), with companion legislation in the House from Representatives Dwight Evans and Brian Fitzpatrick.
Gillibrand stated that a safe, accessible living space should be a right for seniors, and that the VITAL Act would help ensure affordable housing meets mobility and accessibility needs. She added that the Senior Accessible Housing Tax Credit Act would assist seniors in aging with dignity by helping with the costs of mobility-related home modifications. As the top Democrat on the Senate Aging Committee, she is committed to removing barriers to accessible housing.
Eligibility for the Senior Accessible Housing Tax Credit Act is limited to homeowners who turn 60 by the end of the taxable year, with exemptions for those filing jointly if their spouse also meets the age requirement. The credit is also income-dependent; the maximum $10,000 credit is reduced by $1 for every $2 that modified adjusted gross income exceeds certain thresholds: $150,000 for heads of household, $200,000 for joint returns, and $100,000 for other filing statuses. These limits and payouts are slated to be adjusted annually for inflation after 2027.
Kiplinger reported that the legislation addresses a gap because Medicare typically does not cover structural home modifications, leaving many homeowners to bear these substantial costs out-of-pocket. Experts like Cameron Carter, CEO of Rosarium Health, and Julie Kheyfets, CEO of Block Renovation, have highlighted the significant need for accessible housing modifications, noting that most U.S. homes were built before accessibility standards were widely considered, even for public spaces. They emphasized that accessible housing is crucial not only for older adults but also for their ability to travel and engage in leisure activities. Reverse mortgages and other home equity release products can assist seniors with these costs, and tax credits could complement loan proceeds.