Senior Accessible Housing Act

I 116TH CONGRESS 2D SESSION H. R. 8688 To amend the Internal Revenue Code of 1986 to provide a refundable tax credit to seniors who install modifications on their residences that would enable them to age in place, and for other purposes. IN THE HOUSE OF REPRESENTATIVES OCTOBER 27, 2020 Mr. CRIST (for himself, Mr. DELGADO, and Mrs. LAWRENCE) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide a refundable tax credit to seniors who install modifica- tions on their residences that would enable them to age in place, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Senior Accessible 4 Housing Act’’. 5 SEC. 2. HOME MODIFICATION CREDIT FOR SENIORS. 6 (a) IN GENERAL.—Subpart C of part IV of sub- 7 chapter A of chapter 1 of the Internal Revenue Code of 8 VerDate Sep 11 2014 22:34 Nov 07, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8688.IH H8688 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 8688 IH 1986 (relating to refundable credits) is amended by insert- 1 ing after section 36B the following: 2 ‘‘SEC. 36C. HOME MODIFICATION CREDIT FOR SENIORS. 3 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of a 4 qualified individual, there shall be allowed as a credit 5 against the tax imposed by this subtitle for the taxable 6 year an amount equal to the aggregate qualified expendi- 7 tures made by the taxpayer with respect to a qualified resi- 8 dence during such year. 9 ‘‘(b) LIMITATIONS.— 10 ‘‘(1) LIMITATION BASED ON ADJUSTED GROSS 11 INCOME.— 12 ‘‘(A) IN GENERAL.—The amount of the 13 credit allowable under subsection (a) shall be 14 reduced (but not below zero) by $1 for each $2 15 (or fraction thereof) by which the taxpayer’s 16 modified adjusted gross income exceeds the 17 threshold amount. 18 ‘‘(B) THRESHOLD AMOUNT.—For purposes 19 of subparagraph (A), the term ‘threshold 20 amount’ means— 21 ‘‘(i) $150,000 in the case of a joint 22 return, and 23 ‘‘(ii) $100,000 in any other case. 24 VerDate Sep 11 2014 22:34 Nov 07, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8688.IH H8688 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 8688 IH ‘‘(C) MODIFIED ADJUSTED GROSS IN- 1 COME.—For purposes of this paragraph, the 2 term ‘modified adjusted gross income’ means 3 adjusted gross income— 4 ‘‘(i) increased by any amount excluded 5 from gross income under section 911, 931, 6 or 933, and 7 ‘‘(ii) reduced by any amount of social 8 security benefits (as defined in section 9 86(d)) which is included in gross income 10 under section 86 for the taxable year. 11 ‘‘(D) MARITAL STATUS.—For purposes of 12 this paragraph, marital status shall be deter- 13 mined under section 7703. 14 ‘‘(2) LIFETIME CREDIT LIMITATION.—The 15 amount allowed as a credit under subsection (a) (de- 16 termined after the application of paragraph (1)) 17 with respect to the taxpayer for any taxable year 18 shall not exceed the excess (if any) of— 19 ‘‘(A) $30,000, over 20 ‘‘(B) the aggregate amount allowed as a 21 credit under subsection (a) to such taxpayer for 22 all prior taxable years. 23 ‘‘(c) DEFINITIONS.—For purposes of this section— 24 VerDate Sep 11 2014 22:34 Nov 07, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8688.IH H8688 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 8688 IH ‘‘(1) QUALIFIED INDIVIDUAL.—The term ‘quali- 1 fied individual’ means an individual who has at- 2 tained 60 years of age. 3 ‘‘(2) QUALIFIED EXPENDITURE.—The term 4 ‘qualified expenditure’ means an expenditure for any 5 of the following modifications installed on a qualified 6 residence: 7 ‘‘(A) The installation of entrance and exit 8 ramps. 9 ‘‘(B) The widening of doorways. 10 ‘‘(C) The installation of handrails or grab 11 bars. 12 ‘‘(D) The installation of non-slip flooring. 13 ‘‘(E) A modification that is included in a 14 list established and maintained in accordance 15 with subsection (d)(2). 16 ‘‘(3) QUALIFIED RESIDENCE.—The term ‘quali- 17 fied residence’ has the meaning given that term in 18 section 163(h)(4)(A). 19 ‘‘(d) SPECIAL RULES.— 20 ‘‘(1) LABOR COSTS.—Expenditures for labor 21 costs properly allocable to the onsite preparation, as- 22 sembly, or original installation of a modification de- 23 scribed under subsection (c)(2) and for piping or 24 wiring to interconnect such modification to the 25 VerDate Sep 11 2014 22:34 Nov 07, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8688.IH H8688 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 8688 IH dwelling unit shall be taken into account for pur- 1 poses of this section. 2 ‘‘(2) LIST OF MODIFICATIONS.—The Secretary, 3 in consultation with the Secretary of Health and 4 Human Services and after receiving the input of 5 members of the public (including seniors groups, 6 health organizations, and social services organiza- 7 tions), shall establish and maintain a list of any 8 modification that, if installed on a residence of a 9 qualified individual, would enhance the ability of 10 such individual to remain living safely, independ- 11 ently, and comfortably in such residence. 12 ‘‘(3) WHEN EXPENDITURE MADE.— 13 ‘‘(A) IN GENERAL.—Except as provided in 14 subparagraph (B), a qualified expenditure shall 15 be treated as made when the original installa- 16 tion of the modification is completed. 17 ‘‘(B) EXPENDITURES AS PART OF BUILD- 18 ING CONSTRUCTION.—In the case of a qualified 19 expenditure in connection with the construction 20 or reconstruction of a structure, such expendi- 21 ture shall be treated as made when the original 22 use of the constructed or reconstructed struc- 23 ture by the taxpayer begins. 24 VerDate Sep 11 2014 22:34 Nov 07, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H8688.IH H8688 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 8688 IH ‘‘(e) BASIS ADJUSTMENTS.—For purposes of this 1 subtitle, if a credit is allowed under this section for any 2 expenditure with respect to any property, the increase in 3 the basis of such property which would (but for this sub- 4 section) result from such expenditure shall be reduced by 5 the amount of the credit so allowed. 6 ‘‘(f) CREDIT MAY BE ASSIGNED.— 7 ‘‘(1) IN GENERAL.—If the taxpayer elects the 8 application of this subsection for any taxable year, 9 any portion of the credit determined under this sec- 10 tion (after the application of subsection (b)) for such 11 year which would (but for this subsection) be allow- 12 able to the taxpayer may be assigned to any person 13 who is an eligible designee. The person so designated 14 shall be allowed the amount of the credit so assigned 15 and shall be treated as the taxpayer with respect to 16 such credit for purposes of this title (other than this 17 paragraph), except that such credit shall be treated 18 as a credit listed in section 38(b) for such taxable 19 year (and not allowed under subsection (a)). 20 ‘‘(2) ELIGIBLE DESIGNEE.—For purposes of 21 paragraph (1), the term ‘eligible designee’ means 22 any person who— 23 ‘‘(A) with respect to the qualified resi- 24 dence, makes any modification described in sub- 25 VerDate Sep 11 2014 22:34 Nov 07, 2020 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H8688.IH H8688 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 8688 IH section (c)(2) with respect to which the credit 1 allowable under subsection (a) is attributable, 2 ‘‘(B) is licensed by the local governmental 3 jurisdiction in which the qualified residence is 4 located to make the modification or installation, 5 and 6 ‘‘(C) is credentialed in aging home modi- 7 fication by an entity approved by the Secretary 8 of Health and Human Services pursuant to sec- 9 tion 2(b) of the Senior Accessible Housing Act. 10 ‘‘(3) ELECTION REQUIREMENTS.—Any election 11 under paragraph (1) shall include such information 12 and shall be made at such time, and in such form 13 and manner, as the Secretary shall by regulation 14 prescribe.’’. 15 (b) CERTIFICATION REQUIREMENTS.—For purposes 16 of section 36C(f)(2)(C) of the Internal Revenue Code of 17 1986, the Secretary of Health and Human Services may 18 approve a third-part entity to certify persons qualified in 19 the area of accessible home modifications and independent 20 living. In determining whether to approve a person, the 21 Secretary shall ensure that certifications cover home modi- 22 fication solutions for aging at home, local and State build- 23 ing regulations, construction standards, and appropriate- 24 ness of modifications. 25 VerDate Sep 11 2014 22:34 Nov 07, 2020 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H8688.IH H8688 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 8688 IH (c) CONFORMING AMENDMENTS.— 1 (1) Section 38(b) of such Code is amended by 2 striking ‘‘plus’’ at the end of paragraph (32), by 3 striking the period at the end of paragraph (33) and 4 inserting ‘‘, plus’’, and by adding at the end the fol- 5 lowing new paragraph: 6 ‘‘(34) the portion of the home modification 7 credit for seniors assigned to the taxpayer under sec- 8 tion 36C(f).’’. 9 (2) Section 1016(a) of such Code is amended 10 by striking ‘‘and’’ at the end of paragraph (37), by 11 striking the period at the end of paragraph (38) and 12 inserting ‘‘; and’’, and by inserting after paragraph 13 (38) the following: 14 ‘‘(39) to the extent provided in section 36C(e), 15 in the case of amounts with respect to which a credit 16 has been allowed under section 36E.’’. 17 (3) Paragraph (2) of section 1324(b) of title 18 31, United States Code, is amended by inserting 19 ‘‘36C,’’ after ‘‘36B,’’. 20 (d) CLERICAL AMENDMENT.—The table of sections 21 for subpart C of part IV of subchapter A of chapter 1 22 of the Internal Revenue Code of 1986 is amended by in- 23 serting after the item relating to section 36B the following 24 new item: 25 ‘‘Sec. 36C. Home modification credit for seniors.’’. VerDate Sep 11 2014 22:34 Nov 07, 2020 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6211 E:\BILLS\H8688.IH H8688 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 8688 IH (e) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to taxable years beginning after 2 December 31, 2020. 3 Æ VerDate Sep 11 2014 22:34 Nov 07, 2020 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6301 E:\BILLS\H8688.IH H8688 pamtmann on DSKBC07HB2PROD with BILLS