Universal Design Standard Tax Incentive Act

Bill: 118-hr-8547
Sponsor: full_name: Rep. Neguse, Joe [D-CO-2]
Introduced: 2024-05-23
Policy area: Taxation
Latest action: action_date: 2024-05-23
text: Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 8547 IN THE HOUSE OF REPRESENTATIVES May 23, 2024 Mr. Neguse introduced the following bill; which was referred to the Committee on Ways and Means , and in addition to the Committee on Financial Services , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To direct the Secretary of Housing and Urban Development to establish a universal design standards certification system and to establish a refundable tax credit for individuals and groups that construct or renovate buildings and residences, and for other purposes.

1. Short title This Act may be cited as the Universal Design Standard Tax Incentive Act . 2. Certification (a) In general Not later than 1 year after the date of the enactment of this section, the Secretary of Housing and Urban Development, in coordination with the head of each covered agency, shall establish a certification system through which an owner of a dwelling unit or a commercial unit may have such unit certified by the Secretary as meeting the universal design standards. (b) Working group (1) In general The Secretary shall, not later than 1 year after the date of the enactment of this section establish a universal design working group. (2) Membership The working group established under paragraph (1) shall be made up of— (A) staff from Federal agencies, including from— (i) the Department of Agriculture; (ii) the Department of Veterans Affairs; (iii) the Federal Housing Finance Agency; and (iv) the Department of Health and Human Services; (B) community partners, including— (i) the AARP; (ii) the National Council on Aging; (iii) the Universal Design Project; (iv) the Centers for Independent Living; (v) Certified Aging-in-Place Specialists; and (vi) the National Disability Rights Network. (C) academic partners; (D) industry partners; (E) health professionals, including occupational therapists; and (F) individuals with lived experience of disability. (3) Duties The working group established by the Secretary pursuant to paragraph (1) shall— (A) establish universal design standards that comply with the requirements described in subsection (c) and issue such updates of such standards as the working group determines appropriate; (B) establish a timeline for the certification process described in subsection (d); (C) provide recommendations to the Secretary on the licensing process described in subsection (f); and (D) make a recommendation to the Secretary of the Treasury for regulations to determine which buildings renovations are sufficient to qualify for the tax credit established under section 3. (c) Standards The universal design standards established by the working group described in subsection (b) shall— (1) ensure that each certified dwelling unit or commercial unit— (A) is useful and marketable to people with diverse abilities; (B) accommodates a range of individual preferences and abilities; (C) is designed to provide information to residents and visitors with varying sensory abilities; (D) is designed in a manner that minimizes hazards and the adverse consequences of accidental or unintended actions; (E) is designed in a manner that is simple and intuitive to use, regardless of the experience, knowledge, language skills, and concentration level of the user; (F) is designed in a manner to allow for efficient and comfortable use with minimum fatigue; and (G) provides appropriate space for approach, reach, manipulation, and use of all aspects of the unit regardless of the body size, posture, or mobility of the resident or visitor to the dwelling unit; (2) require, at a minimum, that certified dwelling units and commercial units comply with the ADA Standards for Accessible Design ; and (3) be updated not later than 5 years from the date of establishment of such standards, and every 5 years thereafter, to reflect any changes in needs of residents or visitors and any changes in technology. (d) Certification (1) In general If an owner of a dwelling unit or commercial unit wants such unit to be certified by the Secretary as complying the universal design standards, such owner shall submit an application for certification to the Secretary at such time and in such manner as the Secretary may reasonably require and such application shall include such information as is necessary for the Secretary to confirm such unit is compliant with the universal design standards. (2) Verification All information in any application submitted to the Secretary pursuant to paragraph (1) shall be verified by a licensed inspector, at the cost of the owner of the dwelling unit or commercial unit unless such licensed inspector agrees to provide such inspection on a cost-free basis. (3) Certification of multi-unit buildings (A) Buildings with 1 to 4 units With respect to a building containing 1 to 4 dwelling units or commercial units, the property may be certified as accessible if all common areas and all units in the building comply with the universal design standards. (B) Buildings with 5 or more units With respect to a building containing 5 or more dwelling units or commercial units, the property may be certified as accessible if all common areas in the building comply with the universal design standards and not less than 50 percent of all the units in the building comply with the universal design standards. (4) Label If the licensed inspector determines that the dwelling unit meets the universal design standards, the owner of the dwelling unit or commercial unit may use the universal design label established by the Secretary pursuant to subsection (e) when marketing such dwelling unit or commercial unit to potential tenants and buyers. (5) Re-certification (A) In general An owner of a dwelling unit or commercial unit certified under this section shall have such unit re-certified before the date that is 10 years after the date of the most recent certification to continue using the label established pursuant to subsection (e) when marketing such unit. (B) Renovation If a unit certified under this section is renovated, the owner of such unit shall reapply for certification under this section before using the label established pursuant to subsection (e) when marketing such unit. (C) Ownership change If ownership of a dwelling unit or commercial unit certified under this section changes, the new owner of such unit may not use the label established pursuant to subsection (e) when marketing such unit until such new owner has such unit re-certified. (e) Universal design label — (1) In general The Secretary shall establish a label that is designed to identify a dwelling unit or commercial unit as having been certified by the Secretary as complying with the universal design standards. (2) Public awareness The Secretary, in coordination with the head of each covered agency, shall work to increase public awareness of the label established pursuant to paragraph (1), including by providing special outreach to small business owners who are licensed as a professional engineer or registered architect in any State. (f) Licensing of inspectors (1) In general The Secretary shall issue licenses to inspectors to verify the information in any application submitted to the Secretary pursuant to subsection (d). (2) Termination of license The Secretary shall terminate the license of an inspector if such inspector is found to have incorrectly certified 2 or more dwelling units or commercial units during any 2-year period. (3) Falsification If an inspector licensed by the Secretary pursuant to paragraph (1) is found by the Secretary to have falsified information with respect to any application submitted under this section, the Secretary may pursue recourse under Federal law and any applicable State or Territorial licensing laws. 3. Universal Design Standard Tax Credit (a) In general Subpart B of part IV of subchapter A of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 30E. Universal design standard credit (a) In general There shall be allowed as a credit against the tax imposed by this chapter a credit in an amount equal to the sum of— (1) 20 percent of the qualified universal design expenses of the taxpayer for the taxable year that are attributable to design or construction of a new building, plus (2) 50 percent of the qualified universal design expenses of the taxpayer for the taxable year that are attributable to renovation of an existing building. (b) Qualified universal design expenses For purposes of this section, the term qualified universal design expenses means amounts paid or incurred with respect to a building certified under section 2(d) of the Universal Design Standard Tax Incentive Act during the taxable year for design, construction, or renovations of such building performed in order to receive such certification. (c) Special rules (1) Basis reduction For purposes of this subtitle, the basis of any property for which a credit is allowable under this section shall be reduced by the amount of such credit so allowed. (2) No double benefit No other credit or deduction shall be allowed under this chapter for amounts with respect to which a credit is allowed under this section. (3) Application with other credits (A) Business credit treated as part of general business credit So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)). (B) Credit made refundable for individuals In the case of an individual, the credit allowed under subsection (a) shall be treated as a credit allowed under subpart C and not as a credit allowed under this subpart. (4) No medical documentation required The Secretary may not require any person to submit any medical documentation in order to be allowed a credit under subsection (a). . (b) Credit included in general business credit Section 38(b) is amended by striking plus at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting a comma, and by adding at the end the following new paragraph: (42) the portion of the universal design standard credit to which section 30E(c)(3)(A) applies. . (c) Basis adjustment Section 1016(a) of such Code is amended by striking and at the end of paragraph (37), by striking the period at the end of paragraph (38) and inserting , and , and by adding at the end the following new paragraph: (39) to the extent provided in section 30E(C)(1). . (d) Clerical amendment The table of sections for subpart B of part IV of subchapter A of such Code is amended by adding at the end the following new item: Sec. 30E. Universal design standard credit. . (e) Outreach The Secretary of the Treasury and the Secretary of Housing and Urban Development shall carry out an outreach campaign to make the public aware of the credit established by the amendments made by this section. (f) Report The Secretary of the Treasury shall annually publish on the website of the Department of the Treasury an analysis of the total number of taxpayers claiming the credit established by section 30E of such Code and the aggregate value of credits allowed under such section for the most recent calendar year. (g) Effective date The amendments made by this section shall apply to buildings constructed or renovated after the date of the enactment of this Act. 4. Reports to Congress (a) Briefing Not later than 5 years after the date of enactment of this Act, the Secretary, in conjunction with the Commissioner, shall brief the appropriate congressional committees on the progress of the bill as measured by the increase of the Nation’s accessible housing stock and number of individuals that applied for the credit. (b) First report on accessible housing Not later than 5 years after the date of enactment of this Act, the Secretary, in conjunction with the Commissioner, shall submit to the appropriate congressional committees a report that— (1) summarizes and evaluates the implementation of such tax credit and the impact of the United States increasing it’s accessible housing supply for people with disabilities and senior citizens; (2) describes the nature and extent of the coordination among the relevant Federal departments and agencies on the implementation of such strategy; (3) outlines the monitoring and evaluation tools, mechanisms, and common indicators to assess progress made on increase of the Nation’s accessible housing stock; and (4) provides recommendations for improving the program and credit. (c) Second report on accessible housing Not later than 10 years after the date of enactment of this Act, the Secretary, in conjunction with the Commissioner, shall submit to the appropriate congressional committees a report that— (1) summarizes and evaluates the implementation of such tax credit and the impact of United States’ increasing it’s accessible housing supply for people with disabilities and senior citizens; (2) describes the nature and extent of the coordination among the relevant Federal departments and agencies on the implementation of such strategy; (3) outlines the monitoring and evaluation tools, mechanisms, and common indicators to assess progress made on increase of the Nation’s accessible housing stock; and (4) provides recommendations for improving the program and credit. 5. Definitions In this Act: (1) Agency The term Agency refers to the Internal Revenue Service. (2) Appropriate congressional committees The term appropriate congressional committees includes to be provided. (3) Commissioner The term Commissioner refers to the Commissioner of the Internal Revenue Service. (4) Covered agency The term covered agency means— (A) the Department of Agriculture; (B) the Department of Veterans Affairs; (C) the Federal Housing Finance Agency; and (D) the Department of Health and Human Services, including— (i) the Administration for Community Living; and (ii) the Centers for Disease Control and Prevention. (5) Secretary The term Secretary refers to Secretary of the Department of Housing and Urban Development. (6) Universal design standards The term universal design standards refers to the standards established pursuant to section 2(c) that ensure environments, products, and services are accessible and usable by people of all abilities, disabilities, and ages.