S-5216-119
Read twice and referred to the Committee on Finance.
Sponsored by Angela Alsobrooks (D-MD)
What it does
This bill would create a new federal tax credit (Section 25G of the Internal Revenue Code) for individuals age 60 and older who pay for qualifying home accessibility modifications. The credit would cover up to $10,000 per year in expenses for improvements such as wheelchair ramps, grab bars, widened doorways, chair lifts, non-slip flooring, and similar modifications to a primary or secondary residence located in the United States. The credit would phase out for taxpayers with modified adjusted gross income above $100,000 (single filers), $150,000 (heads of household), or $200,000 (joint filers), and both the credit cap and income thresholds would be adjusted for inflation beginning in 2028.
Who benefits
Americans age 60 and older who own homes and wish to age in place — particularly those with mobility limitations or disabilities. Married couples where at least one spouse is 60 or older. Contractors, home modification specialists, and accessibility equipment suppliers who would likely see increased demand for their services. Occupational therapists and other professionals who assess and recommend home modifications. Indirectly, family caregivers who may face reduced caregiving burdens if seniors can live more safely and independently. Medicaid and Medicare programs could see indirect savings if fewer seniors require institutional care.
Who is hurt
Higher-income seniors (above the phase-out thresholds) who would receive a reduced or no credit despite incurring the same expenses. The federal Treasury would forgo tax revenue. Seniors who rent rather than own their homes would not benefit, as the credit applies only to "qualified residences" as defined under the mortgage interest deduction rules. Nursing homes, assisted living facilities, and other long-term care providers could face reduced demand if more seniors successfully age in place. Taxpayers generally, to the extent the revenue loss is offset by spending cuts or other tax increases elsewhere.
Supporters argue
Supporters argue that the U.S. population age 65 and older is projected to reach 80 million by 2040, and that the vast majority of seniors prefer to remain in their own homes. They contend that home modification costs — often ranging from several thousand to tens of thousands of dollars — are a significant barrier to aging in place, and that enabling seniors to remain at home is far less costly to public programs than nursing home care, which averages over $90,000 per year. By targeting the credit at middle-income seniors through income phase-outs, the bill directs benefits toward those least able to self-fund modifications without assistance.
Opponents argue
Opponents argue that the credit primarily benefits homeowners, excluding the roughly one-third of seniors who rent and who may face equal or greater accessibility challenges. They contend that a non-refundable tax credit provides no benefit to low-income seniors who owe little or no federal income tax — the very population most likely to need financial assistance for home modifications — making the bill poorly targeted relative to its stated goal. Critics may also argue that the open-ended category in subsection (c)(1)(K), which allows the Secretary to expand qualifying expenses by regulation, delegates significant policy discretion to the executive branch without clear statutory limits.