The Disabled Access Tax Credit (DATC) for individual home modifications was repealed in 2012, but left a tax credit for businesses and corporations making modifications. The responsibility of paying for personal home modifications was placed solely upon home owners, without the help of a state tax credit to offset personal expenses.
As a consequence, individuals with disabilities were more likely to delay or forgo home modifications, increasing their dependence upon community and/or residential services. This lack of financial assistance also forced them to cope with unnecessary limits to their personal independence if their homes lacked the necessary modifications to fit their special needs safely or effectively.
Thankfully, due to the diligent ensemble of our Kansas MS Activists, MS Caucus and Government Relations Committee, the Kansas House and Senate passed the Disabled Access Tax Credit, with a unanimous vote, to once again include individual home modifications.
The Disabled Access Tax Credit will help families affected by multiple sclerosis (MS) make their homes safer. Home modification investments are essential to promote independent living and can help conserve energy, increase efficiency in daily tasks, avoid dangerous falls and lead to improved quality of life for people living with disabilities.
SUMMARY OF THE LEGISLATION SUB SB265: DWELLING & FACILITY ACCESSIBILITY CREDITS
The bill further reinstates, retroactive to tax year 2013, an individual income tax credit repealed in 2012 to provide reimbursement under certain circumstances for a portion of the costs associated with modifying a taxpayer’s principal residence to make it more accessible to persons with disabilities. The maximum amount allowed is $9,000, and the credit phases out altogether at federal adjusted gross income of $55,000 and above. The bill also reinstates, retroactive to tax year 2013, a second credit to provide reimbursement for a portion of the costs borne by individual income taxpayers making other facilities more accessible to persons with disabilities. This credit, which also was repealed in 2012 for individual (but not corporation) income taxpayers, generally is limited to 50 percent of qualifying expenditures and capped at $10,000.
As stated in the legislative summary, this tax credit is retroactive to 2013. So, it is effective immediately.
Please contact the Kansas Department of Revenue to access the required forms to claim the credit and be sure to consult with your local tax professional to find out how this tax credit may apply to your specific income tax situation.