HouseH.R. 10709119th Congress
Multigenerational HOMES Act
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10709 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 10709
To amend the Internal Revenue Code of 1986 to establish a tax credit
for multigenerational home renovation expenditures.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 1, 2026
Ms. Strickland (for herself and Mr. Joyce of Ohio) 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 establish a tax credit
for multigenerational home renovation expenditures.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Multigenerational Housing
Opportunities to Modify Existing Structures Act'' or the
``Multigenerational HOMES Act''.
SEC. 2. NONREFUNDABLE PERSONAL CREDIT FOR MULTIGENERATIONAL HOME
RENOVATION EXPENDITURES.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 25F the following new section:
``SEC. 25G. MULTIGENERATIONAL HOME RENOVATION EXPENDITURES.
``(a) Allowance of Credit.--
``(1) In general.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this
chapter for the taxable year an amount equal to 15 percent of
the qualified multigenerational home renovation expenditures
made by the taxpayer during such taxable year.
``(2) Lifetime limitation per qualified dwelling unit of
taxpayer.--Subject to subsection (b), the credit allowed under
paragraph (1) with respect to any qualified dwelling unit of
the taxpayer for any taxable year shall not exceed the excess
(if any) of $7,500 over the aggregate credits allowed to such
taxpayer (or, in the case of a married individual, such
individual's spouse) under such paragraph with respect to such
qualified dwelling unit for all prior taxable years.
``(b) Income Phaseout.--
``(1) In general.--The amount of the credit allowed by
subsection (a) (determined without regard to this subsection)
shall be reduced (but not below zero) by the amount which bears
the same ratio to such credit (as so determined) as---
``(A) the excess of--
``(i) the taxpayer's modified adjusted
gross income for such taxable year, over
``(ii) $200,000 (twice such amount in the
case of a joint return), bears to
``(B) $75,000.
``(2) Modified adjusted gross income.--For purposes of this
subsection, the term `modified adjusted gross income' means
adjusted gross income increased by any amount excluded from
gross income under section 911, 931, or 933.
``(c) Refundable Credit for Certain Lower-Income Taxpayers.--In the
case of any taxpayer whose adjusted gross income does not exceed the
area median gross income (determined under rules similar to the rules
of section 142(d)(2)(B)), the credit allowed under this section
(determined without regard to this subsection) shall be treated as a
credit allowed under subpart C (and not as a credit allowed under this
section).
``(d) Definitions.--For purposes of this section--
``(1) Qualified multigenerational housing expenditure.--The
term `qualified multigenerational housing expenditure' means,
with respect to any taxpayer, any expenditure for--
``(A) tangible personal property which is directly
related to--
``(i) improving the safety, mobility, or
accessibility of a qualified dwelling unit of
the taxpayer for purposes of supporting any
qualified relative of such taxpayer, or
``(ii) providing living quarters for any
individual if the taxpayer is a qualified
relative with respect to such individual and
such individual provides care for such
taxpayer,
``(B) labor properly allocable to the onsite
preparation, assembly, or original installation of such
property, and
``(C) inspections of such dwelling unit required
under State or local law by reason of the installation
of such property.
``(2) Qualified dwelling unit.--The term `qualified
dwelling unit' means a dwelling unit which--
``(A) is located in the United States or in a
territory of the United States, and
``(B) is either--
``(i) used as a principal residence by the
taxpayer, or
``(ii) a secondary unit located on the same
property as such principal residence.
``(3) Qualified relative.--
``(A) In general.--The term `qualified relative'
means, with respect to any taxpayer for any taxable
year, an individual--
``(i) who bears a relationship described in
subparagraph (B) to such taxpayer or to such
taxpayer's spouse,
``(ii) who has attained age 65 as of the
last day of such taxable year or is disabled
(within the meaning of section 72(m)(7)),
``(iii) whose principal place of abode for
more than one-half of such taxable year is a
qualified dwelling unit of such taxpayer, and
``(iv) whose TIN is included on the
taxpayer's return of tax for such taxable year.
``(B) Relationship.--For purposes of subparagraph
(A), a relationship described in this subparagraph is a
relationship described in subparagraph (B), (C), (D),
(F), or (G) of section 152(d)(2), except that only a
father-in-law, mother-in-law, brother-in-law, or
sister-in-law shall be taken into account for purposes
of subparagraph (G) thereof.
``(4) Principal residence.--The term `principal residence'
has the same meaning as when used in section 121.
``(5) Safe harbor for delayed occupancy.--An expenditure
shall not be treated as failing to satisfy the requirements of
paragraph (1)(A) solely because the dwelling unit is not
occupied by any person if such person occupies the dwelling
unit not later than the date that is 1 year after the
completion of the improvements referred to in such paragraph.
``(e) Inflation Adjustments.--
``(1) In general.--In the case of any taxable year
beginning after December 31, 2027, the $7,500 amount in
subsection (a)(2), the $200,000 amount in subsection
(b)(1)(A)(ii), and the $75,000 amount in subsection (b)(1)(B)
shall each be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2026' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
``(2) Rounding.--If any increase determined under paragraph
(1) is not a multiple of $50, such amount shall be rounded to
the nearest multiple of $50.
``(f) Carryforward of Unused Credit.--
``(1) In general.--If the credit allowable under subsection
(a)(1) for any taxable year exceeds the applicable tax limit
for such taxable year, such excess shall be a carryover to each
of the 5 succeeding taxable years and, subject to the
limitations of paragraph (2), shall be added to the credit
allowable by subsection (a)(1) for such succeeding taxable
year.
``(2) Limitation.--The amount of the unused credit which
may be taken into account under paragraph (1) for any taxable
year shall not exceed the amount (if any) by which the
applicable tax limit for such taxable year exceeds the sum of--
``(A) the credit allowable under subsection (a)(1)
for such taxable year determined without regard to this
subsection, and
``(B) the amounts which, by reason of this
subsection, are carried to such taxable year and are
attributable to taxable years before the unused credit
year.
``(3) Applicable tax limit.--For purposes of this
subsection, the term `applicable tax limit' means the
limitation imposed by section 26(a) for the taxable year
reduced by the sum of the credits allowable under this subpart
(other than this section and section 25D).
``(g) Substantiation Requirement.--No credit shall be allowed under
this section with respect to any multigenerational home renovation
expenditure unless the taxpayer provides the Secretary with such
documentation as the Secretary may require to substantiate such
expenditure.''.
(b) Conforming Amendments.--
(1) Section 23(c)(1) of such Code is amended by striking
``section 25D'' and inserting ``sections 25D and 25G''.
(2) Section 25(e)(1)(C) of such Code is amended by striking
``and 25F'' and inserting ``25F, and 25G''.
(3) Section 25F(f)(1) of such Code is amended by striking
``this section, section 23, and section 25D'' and inserting
``this section and sections 23, 25D, and 25G''.
(4) Section 6211(b)(4)(A) of such Code is amended by
inserting ``25G by reason of subsection (c) thereof,'' before
``32,''.
(5) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``25G,'' after ``25A,''.
(6) The table of sections for subpart A of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by inserting after the item relating to section 25F
the following new item:
``Sec. 25G. Multigenerational home renovation expenditures.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2026.
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