[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7584 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7584

 To amend the Internal Revenue Code of 1986 to allow a credit against 
  tax for qualified multigenerational housing expenses, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 13, 2026

  Ms. Rivas introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow a credit against 
  tax for qualified multigenerational housing expenses, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Multigenerational Family Tax Credit 
Act of 2026''.

SEC. 2. CREDIT FOR QUALIFIED MULTIGENERATIONAL HOUSING EXPENSES.

    (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:

``SEC. 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.--
            (1) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``25G,'' after ``25A,''.
            (2) Section 6211(b)(4)(A) of the Internal Revenue Code of 
        1986 is amended by inserting ``, 25G by reason of subsection 
        (d) thereof'' before ``, 32''.
            (3) 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 relating to section 25F the following new item:

``Sec. 25G. Qualified multigenerational housing expenses.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2026.
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