The Maryland Department of Housing and Community Development administers a State of Maryland tax credit for residents of the state who have renovated a home to be more accessible. The tax credit may be up to 50% of the cost of the renovation up to $5,000, whether it’s your own home, the home of a family member, or a rental property. To claim this credit, the renovations must have taken place during the prior tax year, and you must demonstrate the costs incurred with receipts, invoices, before and after pictures, etc. Any approved accessibility features will be considered in the calculation for the tax credit amount.
How to Claim Your Tax Credit
After you have completed your renovation, you must take the following steps to claim your tax credit:
- File your taxes for the calendar tax year in which you completed the renovation.
- Fill out the Independent Living Tax Credit Application.
- You can fill it out online or print the form and mail it to this address:
Attn: Jack Daniels
CDA Lending and Risk Director Special Loans and Administration
Maryland Department of Housing and Community Development
7800 Harkins Rd, 3rd Floor
Lanham, MD 20706
- Submit your application to DHCD by June 1st of the current calendar year. DHCD will complete its review of your application by August 1st of the current calendar year.
- Once your application is approved, you must complete and file an amended tax return (Form 502X) with the DHCD tax credit certification attached.
DHCD can approve no more than $1,000,000 of tax credits under this program per calendar year. The total approved amount of your tax credit may be reduced if total demand for tax credits statewide exceeds $1,000,000.
How to Know if you are Eligible
In order to be eligible for the Independent Living Tax Credit you must:
- Be a Maryland resident
- File taxes in Maryland for the same calendar tax year that your renovations were made
- Have documentation to show that you have paid for a home renovation that includes accessibility features.
- Submit a completed application to DHCD and provide any additional information that is requested.
The Department of Housing and Community Development seeks to be flexible and accommodating to those who are seeking the Independent Living Tax Credit. Any renovations that will assist a person in their home can qualify for a tax credit. Some examples of accessibility features include, but are not limited to
- No-step entrance
- Doorways with a 32-inch wide (or wider) clear opening
- Grab bars and reinforced walls to support
- Rocker panel light switches
- Accessible route to no-step entrance inside and outside of home
- Accessible handles on doors, plumbing fixtures
- Chairlifts and elevators
- Visual smoke/fire/carbon monoxide alarm
- Roll-in shower/tub
- Alarms integrated into the unit to assist an individual with a sensory disability
- No-step route to accessible home entrance
- Railings for exterior or interior steps
- Railings for hallways
- Hallways/circulation paths 36 inches wide or more
- Slip-resistant floors
- Switches, doorbells, thermostats and breaker boxes at no more than 48 inches above the floor or electrical receptacles at least 15 inches above the floor
- Lever water controls
- Full extension pull-out drawers, shelves, and racks in base cabinets
- Accessible door hardware
- Bathroom mirrors or medicine cabinets within lines of sight or reach ranges
- Creation of accessible parking space
- Kitchen appliances/work spaces within lines of sight or reach ranges
- Maneuvering space of at least 30 inches by 48 inches in a bathroom or kitchen so that a person using a mobility aid may enter the room, open and close the door, and operate each fixture or appliance