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Tax Breaks For Accessibility Remodeling

With advances in medical care and increased awareness and implementation of healthy lifestyle choices, aging is a lot more fun than it used to be. Here’s another advantage for 21st-century seniors: tax breaks for fixing up your home so you can stay comfortably as you age.

Virginia offers homeowners a Livable Home Tax Credit equal to 50% of what they spend to retrofit a home to add accessibility features (like ramps, grab bars, and widened doorways), with a $5000 cap.

Alternatively, Virginia homeowners can receive as much as $5000 in credits if they purchase or build a home with accessibility features.

While there is no age limit on who can use the tax credit in Virginia, seniors wanting to make their homes aging-in-place-friendly are one of the largest groups that will find this credit useful.

Maryland considered an accessibility tax credit this year but it was ultimately rejected.

A proposal for a similar credit for federal income tax payers is wending its way through Congress now. House Ways & Means is considering a bipartisan-sponsored bill – – H.R. 5254, The Senior Accessible Housing Act – – to provide up to a $30,000 tax credit over a senior’s lifetime for expenses incurred in making aging in place modifications.  Unlike Virginia’s tax credit, the proposed federal credit would be limited to persons 60 years and older. The federal bill is in the early stages but, if it passes, it could be a real boost to the home improvement industry and a great help to seniors.

For more information about state tax credits for accessibility modifications, see this August 24, 2016, article by Jenni Bergal for the Pew Charitable Trusts: http://bit.ly/2bEAnlc.

For details about the federal Senior Accessible Housing Act, see this Sept. 20, 2016, article from National Review: http://bit.ly/2cwXOOc

Wise homeowners consider all financial consequences before remodeling or relocating. Now, go forth and age frugally – – in place if you want to!

Image courtesy of “hywards” at freedigitalphotos.net

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