“To amend the Internal Revenue Code of 1986 to allow a credit against tax for qualified multigenerational housing expenses, and for other purposes.”
No CRS summary available for this bill.
This section establishes a nonrefundable tax credit of up to $8,000 (50% refundable) against the tax imposed by chapter 1 for qualified multigenerational housing expenses paid or incurred in taxable years beginning after December 31, 2026. Qualified multigenerational housing expenses are amounts paid to improve the safety, mobility, or accessibility of the taxpayer's principal residence to support a qualified relative—defined as certain relatives (i.e., child, stepchild, descendant, sibling, parent, stepparent, or in-law limited to father/mother/brother/sister-in-law) who is age 65 or older or disabled and shares the taxpayer's principal residence for more than half the taxable year. The credit phases out by $50 for each $1,000 of modified adjusted gross income exceeding $200,000 ($400,000 for joint returns); denies double benefits by disallowing other credits or deductions and reducing basis; and adjusts the $8,000 limit for inflation after 2027.