A New Bill Could Give Homeowners 60+ a $10,000 Tax Credit for Home Upgrades

A proposed bill seeks to help seniors cover the cost of necessary home modifications and keep more cash in their pocket at the same time. As seniors age, they may need to modify their homes, such as by installing wheelchair ramps, to stay safe. In such situations, the financial support proposed by the bill might mean the difference between seniors being able to remain in their homes and them having to move into a senior care community.

Here's what you should know about the proposed bill and how it might work.

The aging-in-place gap created by Medicare

According to the Pew Research Center, 60% of American adults aged 65 and older say they would want to stay in their home and have someone care for them if they could no longer do so themselves. Older adults are more likely to say they would like to move into assisted living if they're upper-income; about 28% of upper-income older adults say this, while 19% of middle-income older adults and 13% of lower-income older adults would like to make that move.

Unfortunately, Medicare usually doesn't cover structural home modifications, meaning older adults may have to pay for those expenses out of pocket, or they might be forced to sell their home and move. Structural modifications like widening doorways or remodeling bathrooms to make them accessible may be expensive, and they might mean that seniors are no longer able to stay in their homes.

The Senior Accessible Housing Tax Credit Act of 2026

Democratic Senators Angela Alsobrooks and Kirsten Gillibrand introduced the Senior Accessible Housing Tax Credit Act of 2026 in an attempt to solve that problem. The bill would create a new tax credit to help seniors modify their homes to meet aging-related needs.

"This critical legislation allows for seniors to stay in their homes – for many that means homes they love and have been in for decades – and install essential, aging related modifications," said Alsobrooks.

"A safe, accessible place for seniors to live should be a right, not a privilege," said Gillibrand. "The Senior Accessible Housing Tax Credit Act would help our nation's older adults age with dignity by assisting with the cost of home modifications that meet their mobility needs."

How the bill would work

The bill proposes creating a nonrefundable tax credit. Taxpayers age 60 or older could apply for the credit for certain modifications to their main home or a qualified second home. The credit would have an annual $10,000 limit, and could also apply to some labor costs.

Qualifying expenditures could include projects like installing wheelchair ramps, widening doorways, and replacing toilets, bathroom vanities, and kitchen or bathroom faucets. The installation of certain items, including handrails, grab bars, non-slip flooring, bathtub cuts, shower seats, furniture risers, and chair lifts, could also be covered. Cosmetic remodels, such as simply reflooring a room or remodeling a kitchen for aesthetic purposes, would not be covered.

The increasing need for accessible housing for seniors

The bill's proposal comes during a time when the country faces increasing need for accessible housing for seniors. According to Census data, approximately one in every four Americans is going to be 65 or older by 2060. The CDC reports that as of 2025, about 44% of adults 65 and older had a disability, highlighting the need for older adults to be able to upgrade and renovate their homes to accommodate those disabilities.

While there's strong demand for housing that's designed with seniors in mind, such housing is limited. ProBuilder reports that less than 4% of homes could be easily adapted for seniors with mobility challenges, and less than 1% of homes are designed to be fully wheelchair accessible.

Home renovation as an alternative to residential senior care

Helping seniors renovate their homes so they may continue to age in place might provide a meaningful and much-needed alternative to residential senior care. Home renovation costs may be substantial, but they may still cost less than residential care.

According to A Place for Mom data, assisted living costs range from approximately $4,000 to nearly $8,000 per month. Actual costs may vary depending on location. Memory care or nursing home care may cost even more. Assisted living costs have been increasing by about 5% per year, too. Households might be able to save substantial amounts of money if a loved one is able to age in place at home safely after appropriate modifications are made.

Bottom line

The Senior Accessible Housing Tax Credit Act of 2026 is currently just a proposal; Congress needs to pass the bill, and President Trump must sign it before it becomes law. While the $10,000 tax credit isn't currently available, the IRS allows taxpayers to deduct certain qualifying home modifications as medical expenses. Those modifications must be intended to primarily help relieve or prevent a physical or mental disability or illness, and taxpayers may deduct expenses equaling up to 7.5% of their adjusted gross income. To claim the medical deduction, taxpayers must itemize their deductions.

If you're planning a home modification because of medical issues or have significant medical expenses, consider talking with a tax professional about any deduction or tax rebate programs available to you. These deductions may help you make the modifications needed, and they might stretch your retirement dollars further.

You May Also Like

$200 Bonus + Up to 5% Cash Back

Earn a $200 bonus after spending $500 on purchases in your first 3 months from account opening. Member FDIC

SPONSORED

Almost 80% of Americans Fear a Retirement Age Increase — Here’s the Real Reason Why

By FinanceBuzz Editors

10 Smart Money Moves to Retire

By FinanceBuzz Editors

The Easiest Way to Diversify Your Investment Portfolio With Fine Art

By FinanceBuzz Editors

7 Brilliant Ways to Build Wealth After 40

By FinanceBuzz Editors

5 Ways Seniors Are Throwing Away Money

By FinanceBuzz Editors

Best High-Yield Savings Accounts of August 2026

By FinanceBuzz Editors

Up To 5% Cash Back

Discover it^® Cash Back

Benefits Card Details

• Intro APR on purchases and balance transfers
• $0 annual fee
• Apply Now

• Get a 0% intro APR for 15 months on purchases and balance transfers; balance transfer fee applies. Then 17.49% to 26.49% Standard Variable Purchase APR applies, based on credit worthiness
• INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300
• Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases
• Redeem cash back for any amount. No annual fee
• Terms and conditions apply

4.7

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Apply Now

on Issuer's secure website

Rates and fees

Read Card Review

Intro Offer

INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300

Annual Fee

$0

+ -

Why we like it

• The Discover it^® Cash Back is ideal for anyone who loves flexible rewards options.

• Cardholders can redeem their cash back for any amount.

• Earn 5% cash back on rotating bonus categories up to the quarterly maximum when you activate, along with 1% cash back on all purchases. Categories may include places like gas stations, grocery stores, restaurants, and more.

• Apply Now

---

Subscribe Today

Learn how to make an extra $200

Get vetted side hustles and proven ways to earn extra cash sent to your inbox.

or

Subscribe Now →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms