PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Ways and Means.
Congressional Research Service
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People & committees
Rep. Strickland, Marilyn [D-WA-10] · D–WA
Legislative record
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Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Oct 14, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2026-10-01 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The bill would create a federal income-tax credit for eligible home improvements supporting older relatives or relatives with disabilities, including certain living quarters for caregivers. It would cover 15% of qualifying costs, with a starting lifetime cap of $7,500 per taxpayer and dwelling and reductions for higher incomes. For taxpayers whose income does not exceed the area median, the credit would be refundable, meaning it could exceed income tax owed.
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.
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.
(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
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))
(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)
(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).
The proposed credit would equal 15% of qualifying expenditures made during the tax year. Its $7,500 lifetime limit for a dwelling would count credits previously allowed to the taxpayer or their spouse for that dwelling, rather than reset each year.
(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.
The credit would gradually decrease when modified adjusted gross income exceeds $200,000, or $400,000 for a joint return. The reduction would equal the otherwise available credit multiplied by income above that threshold divided by $75,000, with the credit never falling below zero.
(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.
For the income reduction, modified adjusted gross income would mean adjusted gross income plus income excluded under three specified tax-code provisions. The supplied bill does not reproduce those exclusions.
(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.
Although generally structured as a nonrefundable personal credit, the credit would be refundable for taxpayers whose adjusted gross income is at or below area median gross income. That local income benchmark would be determined under rules similar to a referenced tax-code provision.
2. Nonrefundable personal credit for multigenerational home renovation expenditures
(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).
Qualifying costs would include physical items directly related to improving a qualifying home's safety, mobility, or accessibility for an eligible relative. They would also include related onsite preparation, assembly, or original installation labor and inspections required by state or local law because of the installation.
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
(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.
The proposed eligible-cost definition would also cover physical items directly related to providing living quarters for someone who cares for the taxpayer, if the taxpayer is that caregiver's qualifying relative.
The term qualified multigenerational housing expenditure means, with respect to any taxpayer, any expenditure for— (A) tangible personal property which is directly related to—
(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
A qualifying dwelling would have to be in the United States or a U.S. territory. It could be the taxpayer's main home or a secondary unit on the same property. The bill would use the meaning of principal residence from tax-code section 121.
(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.
(4) Principal residence The term principal residence has the same meaning as when used in section 121.
A qualifying relative would have to meet the specified relationship rules, be at least 65 by the end of the tax year or meet the referenced disability definition, and have their main home in the taxpayer's qualifying dwelling for more than half the tax year. Their taxpayer identification number would have to appear on the taxpayer's return.
(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.
Eligible family relationships would come from specified parts of an existing tax-code definition. For the referenced in-law category, only a father-in-law, mother-in-law, brother-in-law, or sister-in-law would count. The bill does not reproduce the other relationship categories.
(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.
A delayed move-in would not by itself disqualify an expenditure under the eligible-property requirements if the person occupies the dwelling within one year after the improvements are completed.
(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.
For tax years beginning after December 31, 2027, the $7,500 lifetime cap, $200,000 income threshold, and $75,000 income-reduction range would increase for inflation using a 2026 base year. Increases would be rounded to the nearest $50.
(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.
Credit that exceeds the applicable tax limit could be carried into the next five tax years. In a later year, it could be used only within the remaining tax limit after that year's credit and carryovers from earlier unused-credit years.
(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.
The carryover's applicable tax limit would start with the limit in tax-code section 26(a), then subtract other credits allowed under the same subpart, except the proposed credit and section 25D. The underlying tax-limit rules are not reproduced.
(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).
Taxpayers would have to provide whatever documentation the Secretary requires to substantiate an expenditure. Without that documentation, no credit would be allowed for the expenditure.
(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.
The bill would also make related cross-reference changes to existing statutes and add the proposed section 25G to the tax code's table of sections. These changes refer to existing provisions whose full text is not supplied.
(b) Conforming amendments (1) Section 23(c)(1) of such Code is amended by striking section 25D and inserting sections 25D and 25G.
(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.
The proposed tax changes would apply to tax years beginning after December 31, 2026.
(c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2026.
The official-actions snapshot updated October 14, 2026, records introduction in the House and referral to the House Committee on Ways and Means on October 1, 2026.
Source snapshot updated 2026-10-14T19:41:32Z. 2026-10-01: Referred to the House Committee on Ways and Means. 2026-10-01: Introduced in House
A closer look
Reviewed version: Introduced in House · 2026-10-01. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated rider was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish attachment history or the contents of other versions.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion does not establish absence in other versions or accompanying materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow preferential carve-out warranting a separate finding was identified in the complete supplied introduced text. The program's ordinary eligibility rules and intended beneficiaries do not alone establish such a benefit. This conclusion is limited to this version.
Full text preserved for this analysis. Legislative record snapshot: Oct 14, 2026. How PlainBill uses AI