Home Lead Safety Tax Credit Act of 2025
Summary
What This Bill Does
The Home Lead Safety Tax Credit Act responds to lead hazards in older housing by creating a new Internal Revenue Code section 36C credit. Congress finds that lead poisoning harms child intelligence, behavior, and learning, that HUD estimates about 22 million housing units have at least one lead paint hazard, and that federal grant programs have reached only about 400,000 homes since 1993. The new credit equals 50 percent of lead hazard reduction activity costs paid or incurred for each eligible dwelling unit. Taxpayers may elect to treat costs as paid in the prior taxable year. The credit is capped at $3,000 per year for abatement activities, $1,000 per year for interim control measures, and $4,000 over the lifetime of a dwelling. It coordinates with State or local tax credits, requires eligible dwelling and cost definitions, and covers lead risk assessments, lead-based paint or dust abatement, lead pipe abatement, interim controls, and related measures.
Who Benefits and How
Children living in older homes benefit because the credit makes lead paint, dust, and pipe hazard reduction less expensive. Homeowners and landlords benefit from a federal tax credit covering half of eligible lead-safety costs within the caps. Low-income families and tenants benefit indirectly when property owners are more able to finance lead risk assessments, abatement, or interim controls. Lead abatement contractors, risk assessors, and healthy-homes professionals benefit from increased demand for qualifying work.
Who Bears the Burden and How
Treasury and IRS staff must administer a new section 36C credit, define eligible costs and dwellings, coordinate State and local tax credits, and prevent duplicate claims. Homeowners and landlords must document qualified lead hazard reduction costs and comply with credit limits. Federal taxpayers bear the revenue cost. Property owners with costs above the annual or lifetime caps must absorb unreimbursed expenses.
Key Provisions
- Establishes a 50 percent tax credit for home lead hazard reduction activity costs.
- Limits annual credits to $3,000 for lead abatement and $1,000 for interim control measures.
- Provides a $4,000 lifetime cap per eligible dwelling unit.
- Authorizes taxpayers to elect prior-year treatment for eligible costs.
- Coordinates the federal credit with State and local lead-safety tax credits.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Creates a home lead hazard reduction tax credit equal to 50 percent of eligible costs, capped at $3,000 annually for abatement, $1,000 annually for interim controls, and $4,000 lifetime per dwelling, to encourage lead risk assessments, abatement, and interim control measures in eligible homes.
Key Policy Areas
Tax, Housing, Public Health, Children
Primary Purpose
Creates a home lead hazard reduction tax credit equal to 50 percent of eligible costs, capped at $3,000 annually for abatement, $1,000 annually for interim controls, and $4,000 lifetime per dwelling, to encourage lead risk assessments, abatement, and interim control measures in eligible homes.
Policy Domains
Substantive provisions
Identified Gains
- Children in older housing
- Homeowners
- Landlords
- Low-income families
- Lead abatement contractors
- Risk assessors
Identified Costs
- IRS tax administrators
- Treasury tax staff
- Homeowners claiming credits
- Landlords claiming credits
- Federal taxpayers
Sponsors
Legislative Progress
In CommitteeMr. Cohen introduced the following bill; which was referred to …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Homeowners, Landlords, Property owners above credit caps
Positive-direction: Homeowners, Landlords
Negative-direction: Property owners above credit caps
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "agencies"
- → ['Department of the Treasury', 'Internal Revenue Service', 'Department of Housing and Urban Development']
- "affected_groups"
- → ['Children', 'Homeowners', 'Landlords', 'Lead abatement contractors', 'Federal taxpayers']
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology