Bill > HB378

This bill creates a new tax credit for qualified home modifications designed to help older adults and individuals with long-term physical or mental disabilities remain in their primary residences more comfortably. The credit will be available for taxpayers who make accessibility upgrades to their homes (or the homes of qualifying occupants) from 2026 to 2030, with a maximum credit of $7,500 per taxable year. An eligible taxpayer must be making modifications for an occupant who is either 65 or older or has a substantial, long-term impairment that limits major life activities. Qualified home modifications include upgrades, renovations, or first-time installations that increase a home's accessibility, and can be made to single-family homes or multi-family residential units within Kentucky. To claim the credit, taxpayers must provide documentation such as invoices and proof that they meet the eligibility requirements. The Department of Revenue is required to submit annual reports to the legislature detailing the credit's usage, including information about taxpayers' locations, total credits claimed, and distribution across income ranges, to help evaluate the program's effectiveness.