HB2498: Income tax, state; residential tax credit for increased accessibility and visitability.

HOUSE BILL NO. 2498
Offered January 10, 2007
Prefiled January 9, 2007
A BILL to amend and reenact § 58.1-339.7 of the Code of Virginia, relating to a residential tax credit for increased accessibility and visitability.
Patron-- Orrock

Committee Referral Pending

Be it enacted by the General Assembly of Virginia:

1.  That § 58.1-339.7 of the Code of Virginia is amended and reenacted as follows:

§ 58.1-339.7. Livable Home Tax Credit.

A. For taxable years beginning on and after January 1, 2000, any taxpayer who purchases a new residence or retrofits or hires someone to retrofit a an existing residence with one or more accessibility features, as defined in this section, provided that such residence or the retrofitting of such residence is designed to improve accessibility, provide universal visitability, and meets the eligibility requirements established by guidelines developed by the Department of Housing and Community Development, shall be entitled to a credit in the amount of $500 or to an amount equal to twenty-five percent of the total amount spent for the retrofitting of an existing residence against the tax imposed pursuant to § 58.1-320 of an amount equal to twenty-five percent of the total amount spent for such features, provided such features are not otherwise required by law. The amount of the credit shall not exceed $500 Such a credit and shall require application by the taxpayer as provided in subsection C. For purposes of this section, the purchase of a new residence means a transaction involving the first sale of a residence or dwelling.

For purposes of this section, "accessibility features" means (i) one no-step entrance allowing access into the residence; (ii) interior passage doors providing a thirty-two-inch wide clear opening; (iii) reinforcements in bathroom walls and installation of grab bars around the toilet, tub, and shower; (iv) light switches and outlets placed in wheelchair-accessible locations; and (v) universal design features or those accessibility or adaptability features prescribed in the Virginia Uniform Statewide Building Code (USBC), as amended.

B. The amount of the credit shall not exceed $500 orIn no event, however, shall the credit exceed the total amount of tax imposed by this chapter, whichever is less, in the year such features are completedthat such purchase or retrofitting is completed. If the amount of the credit exceeds the taxpayer's tax liability for such tax year, the amount whichthat exceeds such liability may be carried over for credit by the taxpayer in the next five taxable years until the total amount of the tax credit has been taken.

C. Eligible taxpayers shall apply for the credit by making application to the Department of Housing and Community Development. The total amount of tax credits granted under this section for any taxable year shall not exceed $1 million. In the event applications for the tax credit exceed the $1 million amount, the Department shall apportion the money by dividing the $1 million by the total amount of tax credits applied for to determine the percentage each taxpayer shall receive.

2.  That the Department of Housing and Community Development shall develop guidelines establishing the eligibility requirements for the provisions of this act by September 30, 2007.

3.  That the provisions of this act shall be applicable to new residences purchased or existing residences retrofitted for the taxable years beginning on or after January 1, 2008.