‘‘(iii) 
LIMITATION.—The 
aggregate 
amount which may be treated as qualified 
retirement home improvement distributions 
by any individual for all taxable years shall 
not exceed $30,000. 
‘‘(iv) SPECIAL RULES.—For purposes 
of this subparagraph— 
‘‘(I) EXEMPTION
OF
DISTRIBU-
TIONS
FROM
TRUSTEE
TO
TRUSTEE 
TRANSFER
AND
WITHHOLDING 
RULES.—For purposes of sections 
401(a)(31), 402(f), and 3405, a quali-
fied retirement home improvement 
distribution shall not be treated as an 
eligible rollover distribution. 
‘‘(II) DISTRIBUTIONS
TREATED 
AS MEETING PLAN DISTRIBUTION RE-
QUIREMENTS.—Any qualified retire-
ment home improvement distribution 
shall be treated as meeting the re-
quirements 
of 
sections 
401(k)(2)(B)(i), 
403(b)(7)(A)(ii), 
403(b)(11), and 457(d)(1)(A).’’. 
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(b) EXCLUDED FROM GROSS INCOME.—Part III of 
subchapter B of chapter 1 of such Code is amended by 
inserting before section 140 the following new section: 
‘‘SEC. 139J. QUALIFIED RETIREMENT HOME IMPROVEMENT 
DISTRIBUTIONS. 
‘‘Gross income shall not include any amount treated 
as a qualified retirement home improvement distribution 
under section 72(t)(2)(I).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions made after Decem-
ber 31, 2021. 
SEC. 3. RETIREMENT HOME IMPROVEMENT DEDUCTION. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by redesignating section 224 as section 225 and by insert-
ing after section 223 the following new section: 
‘‘SEC. 224. RETIREMENT HOME IMPROVEMENT DEDUCTION. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a deduction for the taxable year 
an amount equal to the qualified retirement home im-
provement expenditures of the taxpayer for the taxable 
year. 
‘‘(b) LIMITATION.—The amount of qualified retire-
ment home improvement expenditures taken into account 
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under subsection (a) for the taxable year shall not exceed 
an amount equal to the excess (if any) of— 
‘‘(1) $30,000, over 
‘‘(2) the sum of— 
‘‘(A) the aggregate amount of qualified re-
tirement home improvement expenditures taken 
into account by the individual under subsection 
(a) for all preceding taxable years, and 
‘‘(B) the aggregate amount taken into ac-
count under section 72(t)(2)(I) by the indi-
vidual in determining whether a distribution is 
a qualified retirement home improvement dis-
tribution that is excluded from gross income 
under section 139J. 
‘‘(c) QUALIFIED RETIREMENT HOME IMPROVEMENT 
EXPENDITURES.—For purposes of this section, the term 
‘qualified retirement home improvement expenditures’ 
means amounts paid or incurred— 
‘‘(1) by an individual who has attained the age 
of 591⁄2, 
‘‘(2) with respect to the individual’s primary 
residence (within the meaning of section 121), and 
‘‘(3) to improve for aging or disabled adults the 
accessibility, security, or safety of such residence.’’. 
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(b) DEDUCTION ALLOWED WITHOUT REGARD TO 
WHETHER TAXPAYER ITEMIZES.—Section 62(a) of such 
Code is amended by inserting after paragraph (21) the 
following new paragraph: 
‘‘(22) RETIREMENT
HOME
IMPROVEMENTS.— 
The deduction allowed by section 224.’’. 
(c) DEDUCTION NOT ALLOWED FOR PURPOSES OF 
ALTERNATIVE MINIMUM TAX.—Section 56(b)(1)(A) of 
such Code is amended by striking ‘‘or’’ at the end of 
clause (i), by striking the period at the end of clause (ii) 
and inserting ‘‘, or’’, and by inserting after clause (ii) (as 
so amended) the following: 
‘‘(iii) the deduction allowed by section 
224.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for part VII of subchapter B of chapter 1 of such Code 
is amended by striking the item relating to section 224 
and inserting the following: 
‘‘Sec. 224. Retirement home improvement deduction. 
‘‘Sec. 225. Cross reference.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
December 31, 2022. 
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SEC. 4. RECEIPT AND REPORTING REQUIREMENTS FOR 
TAX BENEFITS RELATING TO RETIREMENT 
HOME IMPROVEMENTS. 
(a) 
ESTABLISHMENT
OF
RECEIPT
REQUIRE-
MENTS.—The Secretary of the Treasury shall, not later 
than 90 days after the date of the enactment of this Act, 
prescribe such receipt requirements as may be necessary 
to carry out the purposes and prevent the abuse of sec-
tions 72(t)(2)(I) and 224 of the Internal Revenue Code 
of 1986 (as added by this Act). 
(b) REPORTS BY SECRETARY.—The Secretary of the 
Treasury shall, not later than November 30, 2023, and 
annually thereafter, submit to Congress a report detailing 
the extent to which taxpayers use sections 72(t)(2)(I) and 
224. 
Æ 
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