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House of Representatives
Session of 2015 - 2016 Regular Session


Posted: September 15, 2016 11:54 AM
From: Representative Michael H. Schlossberg
To: All House members
Subject: Aging in Place Tax Credits
In the near future I will introduce two pieces of legislation to establish tax credits which will help offset the financial burden of aging in place. Allowing seniors to obtain health care in their homes instead of in a nursing facility offers the benefit of healthy independence and reduced costs. Often, obstacles exist to accommodate continued at-home aging.

There is a sense of urgency for these two pieces of legislation. A sizable demographic shift is underway, resulting in a higher percentage of older citizens across Pennsylvania. In addition to the demographic shift, consumer choice and public policy has moved toward a greater emphasis on extending independence by allowing seniors to live in their homes longer than was previously possible. These demographic, consumer and policy changes have not been without challenge. Based on projections, allowing a senior to live in the independence of home can save between 72% and 74% when compared to residence in a nursing facility. These are significant savings for Pennsylvanians.

I do recognize the limited time available in this session to allow for enactment of these proposals. Nonetheless, I believe the importance of this issue warrants beginning the conversation for the benefit of Pennsylvanians. If you have any questions about either of these proposals, please contact Geoff Brace (gbrace@pahouse.net).

Document #1

Introduced as HB2371

Description: The first proposal would establish the Caregiver Tax Credit.  The tax credit would allow taxpayers who qualify for the federal dependent care credit to apply for a tax credit against their state income tax liability.  Taxpayers with an adjusted gross income of less than $40,000 will be eligible for a tax credit equivalent to 50 percent of their federal dependent care credit.  Those with an adjusted gross income of less than $20,000 will be eligible for credit equivalent to their full federal dependent care credit.  As of 2015, 23 other states have a similar tax credit in place. 
  View Attachment

Document #2

Introduced as HB2372

Description: The second proposal would establish the Livable Home Tax Credit.  The tax credit would allow taxpayers renovating or constructing a home in order to improve accessibility and provide universal visitability.  The tax credit for 2017 is not to exceed $2,000 for a new residence or 50% of the amount expended (not to exceed $2,000) to complete renovations to an existing residence.  The tax credit would increase to $5,000 in 2018 and would apply to the homeowner as well as to construction contractors who complete the building or renovation.  This proposal would cap the amount of credit awarded under this article at $1,000,000.  Pennsylvania would join Virginia in enacting this particular proposal. 
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