Multigenerational Family Tax Credit Act of 2026

Key Points

• This bill would create a new tax credit worth up to $8,000 to help families pay for home renovations. The money must be used to make a home safer or easier to move around in for a relative who lives there.
• To qualify for the credit, the relative living with you must be at least 65 years old or have a disability. They also need to live in your home for more than half of the year.
• The credit is available to most families, but the amount starts to decrease for individuals making over $200,000 or married couples making over $400,000 per year.
• If you do not owe much in taxes, you can still get up to half of the credit back as a refund check. This helps lower-income families who might not otherwise benefit from a standard tax break.
• The goal of the policy is to make it more affordable for families to care for elderly or disabled loved ones at home instead of moving them to expensive assisted living or nursing facilities.
• If Congress passes this bill, the new tax credit would become available for home improvements made during the 2027 tax year and beyond.