The Legislature finds there is a need for West Virginians with disabilities and older adults to have stable, affordable and accessible housing. Home modifications increase the quality of life and promote independence for people living with disabilities or older adults and allow these individuals to remain actively engaged in the workplace and community, which benefit our society as a whole. Despite their necessity, home modifications can be expensive and often place a large financial burden on families. As modifying a home can be more affordable than living in an assisted living facility, it makes financial sense for families to keep their loved ones in their own homes for as long as possible and make necessary adjustments to the living space.

In order to successfully address the challenges of a surging population of older adults and persons living with chronic conditions or disabilities who have significant needs for long-term services and support, the state must develop methods to enable these individuals to remain in their homes and avoid or delay unnecessary costs to the state’s health care system. In order to help make renovations more affordable and attainable for these West Virginians, there is hereby provided a tax credit for certain expenses incurred for the cost of home modifications.

As used in this article:

(1) “Commissioner” means the West Virginia Tax Commissioner;

(2) “Disability” means a mental or physical impairment that is permanent or is expected to continue for more than five years, which substantially limits an individual’s major life activities, including, but not limited to, caring for one’s self, performing manual tasks, walking, standing, lifting, bending, seeing, hearing, eating, speaking, breathing, learning, working and the operation of major bodily functions;

(3) “Disabled person” or “disabled individual” means an individual that has a disability, as certified in writing by a physician who has seen and examined the individual.

(4) “Eligible taxpayer” means any taxpayer that is subject to the tax imposed by §11-21-1 et seq, and §11-24-1 et seq, of this code that has paid or incurred costs for livable home modifications to a residence owned, leased or rented by the taxpayer;

(5) “Livable home modifications” or “modifications” means the construction or installation of features, fixtures, equipment or materials in a residence of a disabled person, or in a residence being constructed or modified specifically to become the residence of a disabled person upon completion of the modifications, for the purpose of: improving accessibility of a residence, or the rooms, and amenities in a residence, improving the ability of a disabled person to maneuver, and move about in a residence, or to use facilities, and amenities within the residence or improving or enhancing the ability of a disabled person to live independently. “To live independently” means to pursue and undertake daily life and activity free from, or less subject to, outside control or assistance and free from, or less dependent upon, another person or entity for livelihood, subsistence, or the necessities and amenities of daily life. “Livable home modifications” or “modifications” includes, but is not limited to, the construction or installation of:

(A) Furniture risers;

(B) Handrails;

(D) Kitchen and bathroom fixtures specifically designed for the use and assistance of an individual with a disability, including sinks, cabinets, commodes, shower seats, vanities, bathtubs, showers or other fixtures specifically designed for use of an individual with a disability;

(E) Stair lifts;

(F) Ramps;

(G) Zero step entrances;

(H) Doors, entrances and hallways adequate to accommodate a person in a wheelchair or other device to aid mobility; and

(I) Other modifications designed to improve accessibility and enhance independent living of a disabled person; and

(6) “Residence” means a habitable dwelling, house, manufactured home, apartment or other permanent structure designed as a place in which to live, dwell or reside; “residence” does not include facilities subject to the provisions of §16-5C-1 et seq., §16-5D-1 et seq., and §16-5N-1 et seq. of this code.

(a) An eligible taxpayer shall be allowed a credit against the tax imposed by §11-21-1 et seq, and §11-24-1 et seq, of this code for the costs paid for livable home modifications. If the amount of the credit exceeds the taxpayer’s tax liability for the taxable year, the amount which exceeds the tax liability may be carried over as a credit against the tax liability of the taxpayer pursuant to §11-21-1 et seq, and §11-24-1 et seq, of this code for the following five years, unless sooner used.

(b) The amount of the credit allowed is equal to fifty percent of the purchase price paid for the modifications, but may not exceed $5,000 during the taxable year of the purchase of the modifications.

(c) No credit shall be allowed under this section for modifications to residential rental property made by a person other than the property owner unless written consent for the modifications is provided by the property owner.

(a) Eligible taxpayers shall apply for the credit by making application to the West Virginia Housing Development Fund. The Director of the fund shall issue a certification for the amount of the tax credit approved for the taxpayer. The taxpayer shall attach the certification to the applicable income tax return.

(b) The total amount of tax credits granted under this section for any fiscal year shall not exceed $1 million. In the event the aggregate of tax credits approved in a fiscal year equals $1 million, no more tax credits may be approved in that fiscal year. The Director of the West Virginia Housing Development Fund shall allocate tax credits in the order the applications therefor are received.

(d) Credits granted to a partnership, limited liability company, or small business corporations shall be allocated to the individual partners, members, or shareholders, respectively, in proportion to their ownership or interest in such business entities.