(a) In general

Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25F the following new section:

25G. Qualified multigenerational housing expenses

(a) In general

There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the aggregate amount of qualified multigenerational housing expenses paid or incurred by the taxpayer during such taxable year.

(b) Limitations

(1) Dollar limitation

The credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed $8,000.

(2) Limitation based on modified adjusted gross income

The amount of the credit allowed under subsection (a) for any taxable year shall be reduced (but not below zero) by $50 for each $1,000 (or fraction thereof) by which the taxpayer’s modified adjusted gross income exceeds $200,000 ($400,000 in the case of a joint return). For purposes of the preceding sentence, the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.

(c) Qualified multigenerational housing expenses

For purposes of this section—

(1) In general

The term qualified multigenerational housing expenses means, with respect to any taxpayer, any expenses which are directly related to improving the safety, mobility, or accessibility of the principal residence of the taxpayer for purposes of supporting any qualified relative of such taxpayer.

(2) Qualified relative

(A) In general

The term qualified relative means, with respect to any taxpayer for any taxable year, an individual—

(i)

who bears a relationship described in subparagraph (B) to such taxpayer or to such taxpayer’s spouse,

(ii)

who—

(I)

has attained age 65 as of the last day of such taxable year, or

(II)

is disabled (within the meaning of section 72(m)(7)), and

(iii)

who has the same principal place of abode as such taxpayer for more than one-half of such taxable year.

(B) Relationship

For purposes of subparagraph (A), a relationship described in this subparagraph is a relationship described in subparagraph (B), (C), (D), (F), or (G) of section 152(d)(2), except that only a father-in-law, mother-in-law, brother-in-law, or sister-in-law shall be taken into account for purposes of subparagraph (G) thereof.

(3) Principal residence

The term principal residence has the same meaning as when used in section 121.

(d) Portion of credit made refundable

Fifty percent of so much of the credit allowed under subsection (a) (determined after application of subsection (b) and without regard to this subsection and section 26(a)) shall be treated as a credit allowable under subpart C (and not allowed under subsection (a)).

(e) Denial of double benefit

In the case of any qualified multigenerational housing expenses with respect to which credit is allowed under subsection (a)—

(1)

no other credit or deduction shall be allowed for, or by reason of, any such expense to the extent of the amount of such credit, and

(2)

the basis of any property shall be reduced by the amount of such credit to the extent that such expenses were taken into account in determining such basis.

(f) Inflation adjustment

In the case of any taxable year beginning after 2027, the dollar amount in subsection (b)(1) shall be increased by an amount equal to—

(1)

such dollar amount, multiplied by

(2)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2026 for calendar year 2016 in subparagraph (A)(ii) thereof.

If any increase under the preceding sentence is not a multiple of $100, such amount shall be rounded to the nearest multiple of $100.

(g) Regulations

The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.

(b) Conforming amendments

(c) Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2026.