Healthy Homes Tax Credit Act

To amend the Internal Revenue Code of 1986 to provide a tax credit for property owners who remove hazards relating to lead, asbestos, and radon. 1. Short title This Act may be cited as the Healthy Homes Tax Credit Act 2. Tax credits for reduction of lead, radon, and asbestos hazards in homes (a) In general Subpart B of part IV of subchapter A of chapter 1 30E. Home lead hazard reduction activity (a) Allowance of credit There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 50 percent of the lead hazard reduction activity cost paid or incurred by the taxpayer during the taxable year for each eligible dwelling unit. (b) Limitation The amount of the credit allowed under subsection (a) for any eligible dwelling unit for any taxable year shall not exceed— (1) $5,000, reduced by (2) the aggregate lead hazard reduction activity cost taken into account under subsection (a) with respect to such unit for all preceding taxable years. (c) Definitions For purposes of this section: (1) Certified lead abatement supervisor The term certified lead abatement supervisor (2) Certified inspector The term certified inspector (3) Certified risk assessor The term certified risk assessor (4) Eligible dwelling unit (A) In general The term eligible dwelling unit (B) Dwelling unit The term dwelling unit (5) Lead hazard reduction activity cost (A) In general The term lead hazard reduction activity cost (i) the cost for a certified risk assessor to conduct an assessment to determine the presence of lead pipes or a lead-based paint hazard, (ii) the cost for performing lead abatement measures by a certified lead abatement supervisor, including the removal of lead pipes, the removal of paint and dust, the permanent enclosure or encapsulation of lead-based paint, the replacement of painted surfaces, windows, or fixtures, or the removal or permanent covering of soil when lead-based paint hazards are present in such paint, dust, or soil, (iii) the cost for a certified lead abatement supervisor, those working under the supervision of such supervisor, or a qualified contractor to perform all preparation, cleanup, disposal, and clearance testing activities associated with the lead abatement measures, and (iv) costs incurred by or on behalf of any occupant of such dwelling unit for any relocation which is necessary to achieve occupant protection (as defined under section 35.1345 of title 24, Code of Federal Regulations). (B) Limitation The term lead hazard reduction activity cost (6) Lead-based paint hazard The term lead-based paint hazard (7) Qualified contractor The term qualified contractor (d) Special rules (1) Documentation required for credit allowance No credit shall be allowed under subsection (a) with respect to any eligible dwelling unit for any taxable year unless— (A) after lead hazard reduction activity is complete, a certified inspector or certified risk assessor provides written documentation to the taxpayer that includes— (i) evidence that the eligible dwelling unit meets lead hazard evaluation criteria established by the Environmental Protection Agency or under an authorized State or local program, and (ii) documentation showing that the lead hazard reduction activity meets the requirements of this section, and (B) the taxpayer files with the appropriate State agency and attaches to the tax return for the taxable year— (i) the documentation described in subparagraph (A), (ii) documentation of the lead hazard reduction activity costs paid or incurred during the taxable year with respect to the eligible dwelling unit, and (iii) a statement certifying that the dwelling unit qualifies as an eligible dwelling unit for such taxable year. (2) Basis reduction The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit (determined without regard to subsection (e)). (3) No double benefit Any deduction allowable for costs taken into account in computing the amount of the credit for lead-based paint abatement shall be reduced by the amount of such credit attributable to such costs. (e) Limitation based on amount of tax The credit allowed under subsection (a) for the taxable year shall not exceed the excess of— (1) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over (2) the sum of the credits allowable under subpart A and sections 27, 29, 30, 30A, 30B, 30C, and 30D for the taxable year. (f) Carryforward allowed (1) In general If the credit amount allowable under subsection (a) for a taxable year exceeds the amount of the limitation under subsection (e) for such taxable year (referred to as the unused credit year (2) Rules Rules similar to the rules of section 39 shall apply with respect to the credit carryforward under paragraph (1). 30F. Home radon hazard reduction activity (a) Allowance of credit There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 50 percent of the radon hazard reduction activity cost paid or incurred by the taxpayer during the taxable year for each eligible dwelling unit. (b) Limitation The amount of the credit allowed under subsection (a) for any eligible dwelling unit for any taxable year shall not exceed— (1) $5,000, reduced by (2) the aggregate radon hazard reduction activity cost taken into account under subsection (a) with respect to such unit for all preceding taxable years. (c) Definitions For purposes of this section: (1) Eligible dwelling unit (A) In general The term eligible dwelling unit (B) Dwelling unit The term dwelling unit (2) Qualified radon measurement professional The term qualified radon measurement professional (A) a certification standard promulgated by the American National Standards Institute or International Organization for Standardization, (B) a State, local or other governmental licensing (or equivalent) program, or (C) any other recognized or accredited certification process as determined by the Secretary. (3) Qualified radon mitigation professional The term qualified radon mitigation professional (A) a certification standard promulgated by the American National Standards Institute or International Organization for Standardization, (B) a State, local or other governmental licensing (or equivalent) program, or (C) any other recognized or accredited certification process as determined by the Secretary. (4) Radon The term radon Toxic Substances Control Act 15 U.S.C. 2662 (5) Radon hazard reduction activity cost (A) In general The term radon hazard reduction activity cost (i) the cost for a qualified radon measurement professional to conduct an assessment to determine the indoor radon level of the dwelling unit, and (ii) if the indoor radon level of the dwelling unit is not less than 2 picocuries per liter of air, as determined by a qualified radon measurement professional, the cost for performing radon abatement measures by a qualified radon mitigation professional. (B) Limitation The term radon hazard reduction activity cost (d) Special rules (1) Documentation required for credit allowance No credit shall be allowed under subsection (a) with respect to any eligible dwelling unit for any taxable year unless— (A) after radon hazard reduction activity is complete, a qualified radon measurement professional provides written documentation to the taxpayer that includes— (i) evidence that the eligible dwelling unit meets radon hazard evaluation criteria established under an authorized State or local program, and (ii) documentation showing that the radon hazard reduction activity meets the requirements of this section, and (B) the taxpayer files with the appropriate State agency and attaches to the tax return for the taxable year— (i) the documentation described in subparagraph (A), (ii) documentation of the radon hazard reduction activity costs paid or incurred during the taxable year with respect to the eligible dwelling unit, and (iii) a statement certifying that the dwelling unit qualifies as an eligible dwelling unit for such taxable year. (2) Basis reduction The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit (determined without regard to subsection (e)). (3) No double benefit Any deduction allowable for costs taken into account in computing the amount of the credit for radon abatement shall be reduced by the amount of such credit attributable to such costs. (e) Limitation based on amount of tax The credit allowed under subsection (a) for the taxable year shall not exceed the excess of— (1) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over (2) the sum of the credits allowable under subpart A and sections 27, 29, 30, 30A, 30B, 30C, and 30D for the taxable year. (f) Carryforward allowed (1) In general If the credit amount allowable under subsection (a) for a taxable year exceeds the amount of the limitation under subsection (e) for such taxable year (referred to as the unused credit year (2) Rules Rules similar to the rules of section 39 shall apply with respect to the credit carryforward under paragraph (1). 30G. Home asbestos hazard reduction activity (a) Allowance of credit There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 50 percent of the asbestos hazard reduction activity cost paid or incurred by the taxpayer during the taxable year for each eligible dwelling unit. (b) Limitation The amount of the credit allowed under subsection (a) for any eligible dwelling unit for any taxable year shall not exceed— (1) either— (A) $5,000 in the case of asbestos hazard reduction activity cost including asbestos abatement measures described in clauses (i), (ii), (iv), and (v) of subsection (c)(3)(A), or (B) $1,000 in the case of asbestos hazard reduction activity cost including interim asbestos control measures described in clauses (i), (iii), (iv), and (v) of subsection (c)(3)(A), reduced by (2) the aggregate asbestos hazard reduction activity cost taken into account under subsection (a) with respect to such unit for all preceding taxable years. (c) Definitions For purposes of this section: (1) Accredited asbestos abatement contractor or supervisor The term accredited asbestos abatement contractor or supervisor (2) Accredited asbestos inspector The term accredited asbestos inspector (3) Asbestos The term asbestos Toxic Substances Control Act 15 U.S.C. 2642 (4) Asbestos hazard The term asbestos hazard imminent hazard to the health and safety 20 U.S.C. 3610 (5) Asbestos hazard reduction activity cost (A) In general The term asbestos hazard reduction activity cost (i) the cost for an accredited asbestos inspector to conduct an assessment to determine the presence of a asbestos hazard, (ii) the cost for performing asbestos abatement measures by an accredited asbestos abatement contractor or supervisor, (iii) the cost for performing interim asbestos control measures to reduce exposure or likely exposure to asbestos hazards, but only if such measures are evaluated and completed by an accredited asbestos abatement contractor or supervisor using accepted methods, are conducted by an accredited asbestos abatement contractor or supervisor, and have an expected useful life of more than 10 years, (iv) the cost for an accredited asbestos abatement supervisor, those working under the supervision of such supervisor, or an accredited asbestos abatement contractor or supervisor to perform all preparation, cleanup, disposal, and clearance testing activities associated with the asbestos abatement measures or interim asbestos control measures, and (v) costs incurred by or on behalf of any occupant of such dwelling unit for any relocation which is necessary to achieve occupant protection (as determined by the Administrator of the Environmental Protection Agency). (B) Limitation The term asbestos hazard reduction activity cost (6) Eligible dwelling unit (A) In general The term eligible dwelling unit (B) Dwelling unit The term dwelling unit (d) Special rules (1) Documentation required for credit allowance No credit shall be allowed under subsection (a) with respect to any eligible dwelling unit for any taxable year unless— (A) after asbestos hazard reduction activity is complete, an accredited asbestos inspector provides written documentation to the taxpayer that includes— (i) evidence that the eligible dwelling unit meets asbestos hazard evaluation criteria established under an authorized State or local program, and (ii) documentation showing that the asbestos hazard reduction activity meets the requirements of this section, and (B) the taxpayer files with the appropriate State agency and attaches to the tax return for the taxable year— (i) the documentation described in subparagraph (A), (ii) documentation of the asbestos hazard reduction activity costs paid or incurred during the taxable year with respect to the eligible dwelling unit, and (iii) a statement certifying that the dwelling unit qualifies as an eligible dwelling unit for such taxable year. (2) Basis reduction The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit (determined without regard to subsection (e)). (3) No double benefit Any deduction allowable for costs taken into account in computing the amount of the credit for asbestos abatement shall be reduced by the amount of such credit attributable to such costs. (e) Limitation based on amount of tax The credit allowed under subsection (a) for the taxable year shall not exceed the excess of— (1) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over (2) the sum of the credits allowable under subpart A and sections 27, 29, 30, 30A, 30B, 30C, and 30D for the taxable year. (f) Carryforward allowed (1) In general If the credit amount allowable under subsection (a) for a taxable year exceeds the amount of the limitation under subsection (e) for such taxable year (referred to as the unused credit year (2) Rules Rules similar to the rules of section 39 shall apply with respect to the credit carryforward under paragraph (1). . (b) Technical amendments (1) Section 1016(a) (A) in paragraph (36), by striking and (B) in paragraph (37), by striking the period at the end and inserting a comma, and (C) by adding at the end the following new paragraphs: (38) in the case of an eligible dwelling unit with respect to which a credit for any lead hazard reduction activity cost was allowed under section 30E, to the extent provided in section 30E(d)(2), (39) in the case of an eligible dwelling unit with respect to which a credit for any radon hazard reduction activity cost was allowed under section 30F, to the extent provided in section 30F(d)(2), and (40) in the case of an eligible dwelling unit with respect to which a credit for any asbestos hazard reduction activity cost was allowed under section 30G, to the extent provided in section 30G(d)(2) . (2) The table of sections for subpart B of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 30D the following new items: Sec. 30E. Home lead hazard reduction activity. Sec. 30F. Home radon hazard reduction activity. Sec. 30G. Home asbestos hazard reduction activity. . (c) Effective date The amendments made by this section shall apply to costs incurred after December 31, 2015, in taxable years ending after that date.

Summary: Healthy Homes Tax Credit Act This bill amends the Internal Revenue Code to allow new tax credits for 50% of: (1) lead hazard reduction activity costs, (2) radon hazard reduction activity costs, and (3) asbestos hazard reduction activity costs. These costs must be incurred with respect to an eligible dwelling and the credit for such costs is generally limited to $5,000 for any eligible dwelling in any taxable year, reduced by costs taken into account in previous taxable years. The bill defines an "eligible dwelling" generally as a dwelling unit that is: (1) placed in service before 1950; (2) located in the United States; and (3) a house, apartment, condominium, mobile home, boat, or similar property, but not a unit used exclusively as a hotel, motel, inn, or similar establishment.