1986 (relating to nonrefundable personal credits) is 
amended by inserting after section 25D the following: 
‘‘SEC. 25E. HOME MODIFICATION CREDIT FOR SENIORS. 
‘‘(a) ALLOWANCE
OF CREDIT.—In the case of a 
qualified individual, there shall be allowed as a credit 
against the tax imposed by this chapter for the taxable 
year an amount equal to the sum of all qualified expendi-
tures made by the taxpayer with respect to a qualified resi-
dence during such year. 
‘‘(b) LIFETIME LIMITATION.—The amount allowed 
as a credit under subsection (a) with respect to the tax-
payer for any taxable year shall not exceed the excess (if 
any) of— 
‘‘(1) $30,000, over 
‘‘(2) the aggregate amount allowed as a credit 
under subsection (a) to such taxpayer for all prior 
taxable years. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED INDIVIDUAL.—The term ‘quali-
fied individual’ means an individual who has at-
tained 60 years of age. 
‘‘(2) QUALIFIED
EXPENDITURE.—The term 
‘qualified expenditure’ means an expenditure for any 
of the following modifications installed on a qualified 
residence: 
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‘‘(A) The installation of entrance and exit 
ramps. 
‘‘(B) The widening of doorways. 
‘‘(C) The installation of handrails or grab 
bars. 
‘‘(D) The installation of non-slip flooring. 
‘‘(E) A modification that is included in a 
list established and maintained in accordance 
with subsection (d)(2). 
‘‘(3) QUALIFIED RESIDENCE.—The term ‘quali-
fied residence’ has the meaning given that term in 
section 163(h)(4)(A). 
‘‘(d) SPECIAL RULES.— 
‘‘(1) LABOR
COSTS.—Expenditures for labor 
costs properly allocable to the onsite preparation, as-
sembly, or original installation of a modification de-
scribed under subsection (c)(2) and for piping or 
wiring to interconnect such modification to the 
dwelling unit shall be taken into account for pur-
poses of this section. 
‘‘(2) LIST OF MODIFICATIONS.—The Secretary, 
in consultation with the Secretary of Health and 
Human Services and after receiving the input of 
members of the public (including seniors groups, 
health organizations, and social services organiza-
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tions), shall establish and maintain a list of any 
modification that, if installed on a residence of a 
qualified individual, would enhance the ability of 
such individual to remain living safely, independ-
ently, and comfortably in such residence. 
‘‘(3) WHEN EXPENDITURE MADE.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a qualified expenditure shall 
be treated as made when the original installa-
tion of the modification is completed. 
‘‘(B) EXPENDITURES AS PART OF BUILD-
ING CONSTRUCTION.—In the case of a qualified 
expenditure in connection with the construction 
or reconstruction of a structure, such expendi-
ture shall be treated as made when the original 
use of the constructed or reconstructed struc-
ture by the taxpayer begins. 
‘‘(e) BASIS ADJUSTMENTS.—For purposes of this 
subtitle, if a credit is allowed under this section for any 
expenditure with respect to any property, the increase in 
the basis of such property which would (but for this sub-
section) result from such expenditure shall be reduced by 
the amount of the credit so allowed.’’. 
(b) CONFORMING AMENDMENT.—Section 1016(a) of 
such Code is amended— 
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(1) by redesignating paragraphs (35) through 
(37) as paragraphs (36) through (38), respectively; 
and 
(2) by inserting after paragraph (34) the fol-
lowing new paragraph: 
‘‘(35) to the extent provided in section 25E(e), 
in the case of amounts with respect to which a credit 
has been allowed under section 25E,’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 25D the following new item: 
‘‘Sec. 25E. Home Modification Credit for Seniors.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2016. 
Æ 
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