Photo Courtesy of Butler Brothers Construction
What Tax Incentives are Available?
Whether you’re a homeowner buying a new home or renovating an existing home, or you’re a builder or home remodeler, this program offers great benefits!
Property owners may receive:
- Up to $2,500 for 50% of the costs of any of 9 features – see the list – if
- You spend more than $500 for purchase and installation of the feature(s);
- You own and live in the home or condominium as your primary residence.
- Up to $3,000 for 100% of the reasonable costs of making your single family home VISITable (Level I accessibility)
- Up to $10,000 for 100% of the reasonable costs of making your single family home LIVEable (Level II accessibility)
When do I get my tax credit?
- After building permit is issued and work is completed and certified by DPS;
- You will receive up to $2000 of tax credit in any tax year and the balance in following year(s).
Example – I spent $15,000 on features and installation (including permit fees) and my home meets the LIVEable (Level II) standard. I receive a tax credit of $10,000 which is applied in the amount of $2000/year for 5 successive years.
The bill also provides for an impact tax credit against the Development Impact Tax for Public School Improvements for meeting the Level I Accessibility Standard. The Impact Tax Credit is available to property owners for new construction of single-family attached and detached homes. The amount of the impact tax credit is dependent upon the Impact Tax Credit Certification Agreement between the property owner and the County.
The first option for homeowners is to add just those Accessibility Features that make sense for your home and your needs. For maximum flexibility, the program also includes two levels of Accessibility Standards — Level I (VISITable) homes and Level II (LIVEable) homes. Whichever approach makes sense for you, the goal is to create more homes that welcome people at all ages and stages of life.
- Property Tax Credit — runs with property- 50% of eligible costs. Up to $2,500 less other subsidy. Amount of credit that exceeds tax imposed carries over.
- Applicability — Expenditures in excess of $500. Incurred within 12 months of application.
- Type of residence ownership — Condominium Unit. Attached or detached single family dwelling unit.
- School Impact Tax Credit — Not Applicable
1. No-step front door entrance or a no-step entrance to another location providing access to the main living space.
2. Ramp creating a no-step entrance.
3. Exterior doorway with a 32-inch clear opening, and exterior lighting controlled from inside the residence or automatic or continuously on.
4. An exterior or interior elevator or lift or stair glide unit.
5. An interior doorway with a 32-inch clear opening.
6. Alarm, appliance, and control structurally integrated to assist with a sensory disability.
7. Maneuverable bathroom or kitchen.
8. Walls around a toilet, tub, or shower reinforced and properly installed grab bars.
9. Accessibility-enhanced bathroom, including a walk-in or roll-in shower or tub.
Accessibility Standards for Level I (VISITable) home and Level II (LIVEable) home include design elements such as a no-step entrance, and slightly wider interior doors. These elements accommodate people living with temporary or permanent disabilities as well as friends or relatives with mobility limitations and make it easier for everyone including access for a baby stroller or large objects.
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Property Tax Credit — runs with property - Up to $3,000 less other subsidy including school impact tax credit. Maximum credit to be applied in any tax year is $2,000 and excess credit carries over.
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Applicability — Expenditures in excess of $500. Incurred within 12 months of application.
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Type of residence ownership — Attached or detached single family dwelling unit.
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School Impact Tax Credit
- 5% of the single family houses in project - $500/Level I house.
- 10% of the single family houses in project - $1,000/Level I house.
- 25% of the single family houses in project - $1,500/Level I house.
- 30% of the single family houses in project - $2,000/Level I house.
- Applies only where there is no bonus density for DFL units.
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A. Access into the Home
At least one no-step entrance
B. Place to Visit
Connected to an accessible route to a place to visit on the entry level
C. Powder Room
A usable powder room or bathroom
D. Interior Doorway
A 32-inch nominal clear width interior door
-
Property Tax Credit — runs with property - Up to $10,000 less other subsidy including school impact tax credit. Maximum credit to be applied in any tax year is $2,000 and excess credit carries over.
-
Applicability — Expenditures in excess of $500. Incurred within 12 months of application.
-
Type of residence ownership — Attached or detached single family dwelling unit.
-
School Impact Tax Credit
- 5% of the single family houses in project - $500/Level I house.
- 10% of the single family houses in project - $1,000/Level I house.
- 25% of the single family houses in project - $1,500/Level I house.
- 30% of the single family houses in project - $2,000/Level I house.
- Applies only where there is no bonus density for DFL units.
A. Access into the Home
At least one no-step entrance
B. Place to Visit
Connected to an accessible route to a place to visit on the entry level
C. Powder Room
A usable powder room or bathroom
D. Interior Doorway
A 32-inch nominal clear width interior door
E. Accessible Circulation Path
An interior way of passage from one room to another that can accommodate a wheelchair or other mobility aid.
F. Accessible Kitchen
A kitchen that can accommodate a wheelchair or other mobility aid and meets the specification in the Montgomery County Code.
G. Accessible Bedroom
At least one accessible bedroom
H. Accessible Bathroom
Accessibility-enhanced full bathroom that includes a walk-in or roll-in shower or tub
