A Democratic bill with 1 Republican cosponsor · See the cosponsor
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill establishes a tax credit for multigenerational home renovation expenditures. Under Section 2, individuals can claim a credit equal to 15 percent of qualified expenditures made during the taxable year. The bill sets a lifetime limitation of $7,500 per qualified dwelling unit for this credit. It also includes an income phaseout for taxpayers with a modified adjusted gross income over $200,000, or twice that amount for joint returns. Additionally, certain lower-income taxpayers whose adjusted gross income does not exceed the area median gross income may receive the credit as a refundable credit under section 25G(c). The amendments made by this section apply to taxable years beginning after December 31, 2026.
Yes· 3 of 21
- Scored +4
Would people over 65 be better off under this?
Seniors over 65 benefit significantly from home modifications that improve accessibility, safety, and mobility to support aging in place.
- Scored +4
Would households on low incomes be better off under this?
Lower-income taxpayers whose income does not exceed the area median gross income are eligible for a refundable version of the credit.
- Scored +4
Would people with disabilities be better off under this?
The legislation directly subsidizes modifications to improve safety, mobility, and accessibility for disabled relatives living in the household.
The opposite
- Scored -1
Does this reduce what the federal government owes?
Creating a new tax credit will reduce federal revenue, potentially increasing the national debt.
- Scored -1
Does this reduce what the federal government spends?
The introduction of a tax credit and refundable credit provisions represents a net cost to the federal budget.
- Scored -1
Does this make the government pay for what it commits to?
The introduction of a new tax credit without corresponding revenue offsets weighs negatively on fiscal balance.
Who it would affect, and how
Potential Positive Impacts for People
-
Section 25G(a)(1) provides individuals with a tax credit equal to 15 percent of qualified multigenerational home renovation expenditures, which can help families offset the financial costs of remodeling their homes.
-
Section 25G(c) treats the credit as refundable for certain lower-income taxpayers whose adjusted gross income does not exceed the area median gross income, allowing individuals with lower incomes to directly benefit from the financial assistance even if they owe little to no federal income tax.
-
Section 25G(d)(1) covers expenditures for tangible personal property, labor, and required state or local inspections related to improving safety, mobility, or accessibility for a qualified relative, or providing living quarters for an individual who provides care for the taxpayer, which helps families care for aging or disabled relatives at home.
Potential Negative Impacts for People
-
Section 25G(a)(2) imposes a lifetime limitation of $7,500 per qualified dwelling unit on the credit, meaning that families undertaking larger or multiple renovation projects over time will bear the full financial burden once this cap is reached.
-
Section 25G(b)(1) establishes an income phaseout that reduces the credit amount for taxpayers with a modified adjusted gross income exceeding $200,000 for single filers or twice that amount for joint returns, which could limit or eliminate the financial benefit for middle- and upper-income households who also face high renovation costs.
-
Section 25G(g) requires taxpayers to provide documentation to the Secretary to substantiate their expenditures, creating an administrative burden and paperwork requirement for individuals seeking to claim the credit.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would households on low incomes be better off under this? — Lower-income taxpayers whose income does not exceed the area median gross income are eligible for a refundable version of the credit. Would people with disabilities be better off under this? — The legislation directly subsidizes modifications to improve safety, mobility, and accessibility for disabled relatives living in the household. Would people over 65 be better off under this? — Seniors over 65 benefit significantly from home modifications that improve accessibility, safety, and mobility to support aging in place. Would people in middle age be better off under this? — Middle-aged adults often shoulder the responsibility of caring for aging parents or disabled relatives and can directly benefit from the renovation credit. Would middle-income households be better off under this? — Middle-class families undertaking home renovations to accommodate older or disabled relatives can benefit from the 15 percent tax credit, subject to phaseouts. Would business owners be better off under this? — Small business owners in the construction, plumbing, and remodeling trades benefit from increased demand for home improvement projects. Would children be better off under this? — Living in multigenerational households can enhance family support systems for children. Would veterans be better off under this, taking everything together? — Aging or disabled veterans who live with relatives can benefit from home accessibility and mobility renovations supported by the bill. Would women be better off under this? — Women frequently serve as primary family caregivers and may benefit from home modifications that ease the caregiving burden.
- Social Issues And Justice
- Does this expand the rights of people with disabilities? — The credit specifically covers expenditures for improving the safety, mobility, and accessibility of a dwelling unit to support disabled relatives. Does this make housing cost less? — The bill supports multigenerational living arrangements and secondary dwelling units, which can improve housing options for families. Is this likely to lift people out of poverty? — Providing a refundable tax credit for lower-income taxpayers helps offset renovation costs for families with limited financial resources. Is this likely to reduce homelessness? — Facilitating living quarters for relatives and caregivers can help prevent housing instability among vulnerable individuals.
- Economy And Finance
- Does this cut taxes for middle-income families? — The bill provides a tax credit for multigenerational home renovation expenditures, which reduces tax liability for middle-income families making qualified home modifications. Does this make it easier to run a small business? — Contractors, builders, and suppliers involved in home remodeling will likely see increased business opportunities from homeowners utilizing the credit. Is this likely to create jobs? — By incentivizing home renovation projects, the bill is likely to stimulate demand for labor in the construction and home improvement sectors. Does this cut taxes for small businesses? — Home renovation and construction small businesses may benefit indirectly from increased demand for remodeling projects incentivized by the tax credit. Is this likely to grow the economy? — The bill encourages spending on home renovations, providing a modest stimulus to the residential construction and home improvement industries. Does this make the government pay for what it commits to? — The introduction of a new tax credit without corresponding revenue offsets weighs negatively on fiscal balance. Does this reduce what the federal government spends? — The introduction of a tax credit and refundable credit provisions represents a net cost to the federal budget. Does this reduce what the federal government owes? — Creating a new tax credit will reduce federal revenue, potentially increasing the national debt.
- Healthcare
- Does this make health care easier to get in general? — By providing financial support for home modifications that improve safety and mobility, the bill helps families care for aging or disabled relatives at home.
- Environment Energy And Infrastructure
- Does this invest in rural communities? — The use of area median gross income for determining refundable credit eligibility helps ensure rural and lower-cost areas are included.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — The bill establishes clear documentation and substantiation requirements for claiming the tax credit.
- 10/1/2026
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
David JoyceRepublican · Ohio