Multigenerational Family Tax Credit Act of 2026
Summary
What This Bill Does
This bill creates a qualified multigenerational housing expenses credit in the Internal Revenue Code. Taxpayers may claim expenses directly related to improving the safety, mobility, or accessibility of their principal residence to support a qualified relative. The credit is capped at $8,000 per year and phases down by $50 for each $1,000 of modified AGI above $200,000, or $400,000 for joint returns. Qualified relatives must be specified family members of the taxpayer or spouse, be age 65 or older or disabled under section 72(m)(7), and live in the taxpayer’s principal residence for more than half the year. Fifty percent of the credit is refundable through subpart C, taxpayers cannot also claim other credits or deductions for the same expenses to the extent of the credit, basis is reduced for property improvements counted toward the credit, the dollar cap is inflation-adjusted after 2027, Treasury must issue guidance, and the amendments apply to taxable years beginning after December 31, 2026.
Who Benefits and How
Multigenerational households, taxpayers adapting homes for older parents or disabled relatives, older relatives, disabled relatives, and home-modification contractors benefit from a partly refundable credit for safety, mobility, and accessibility improvements.
Who Bears the Burden and How
The Internal Revenue Service, Treasury Department, tax preparers, higher-income households above the phaseout thresholds, and federal taxpayers must administer eligibility definitions, refundable-credit mechanics, anti-double-benefit rules, basis reductions, inflation adjustments, and revenue costs.
Key Provisions
- Creates IRC section 25G for qualified multigenerational housing expenses.
- Provides a credit capped at $8,000 and phased down above $200,000 of modified AGI or $400,000 for joint returns.
- Requires qualifying expenses to improve safety, mobility, or accessibility of a principal residence for older or disabled relatives living with the taxpayer.
- Provides 50 percent refundability, denies double benefits, reduces basis for credited expenses, and inflation-adjusts the cap after 2027.
- Directs Treasury guidance and applies the credit to taxable years beginning after December 31, 2026.
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 new IRC section 25G tax credit for qualified multigenerational housing expenses, capped at $8,000, phased down above $200,000 of modified AGI or $400,000 for joint returns, 50 percent refundable, inflation-adjusted after 2027, and available for principal-residence safety, mobility, or accessibility improvements supporting older or disabled relatives living with the taxpayer.
Key Policy Areas
Tax, Housing, Aging, Disability
Primary Purpose
Creates a new IRC section 25G tax credit for qualified multigenerational housing expenses, capped at $8,000, phased down above $200,000 of modified AGI or $400,000 for joint returns, 50 percent refundable, inflation-adjusted after 2027, and available for principal-residence safety, mobility, or accessibility improvements supporting older or disabled relatives living with the taxpayer.
Policy Domains
Bill-wide scope
Identified Gains
- Multigenerational households
- Taxpayers adapting homes
- Older relatives
- Disabled relatives
- Home-modification contractors
Identified Costs
- Internal Revenue Service
- Treasury Department
- Tax preparers
- Higher-income households
- Federal taxpayers
Sponsors
Legislative Progress
In CommitteeReferred to the House Committee on Ways and Means.
Introduced in House
Ms. Rivas introduced the following bill; which was referred to …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Multigenerational households, Taxpayers
Positive-direction: Multigenerational households
Negative-direction: Taxpayers
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "MAGI"
- → Modified adjusted gross income
- "primary_beneficiaries"
- → Multigenerational households, Taxpayers adapting homes, Older relatives, Disabled relatives, Home-modification contractors
- "primary_burden_bearers"
- → Internal Revenue Service, Treasury Department, Tax preparers, Higher-income households, 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