Bill Overview
Title: Home Modification for Accessibility Act of 2022
Description: This bill allows distributions from a tax-exempt retirement plan, without penalty, for retirement home improvements to an individual's primary residence to improve for aging or disabled adults the accessibility, security, or safety of such residence. The bill limits the amount of such distributions to $30,000 for all taxable years. The bill also excludes the amount of such distributions from the recipient's gross income, for income tax purposes, and allows a deduction for a taxpayer's retirement home improvement expenditures.
Sponsors: Rep. Crist, Charlie [D-FL-13]
Target Audience
Population: Individuals needing home modifications for accessibility
Estimated Size: 70000000
- The bill is specifically aimed at individuals who need to modify their homes for accessibility. This typically includes older adults and individuals with disabilities.
- Pew Research indicates that as of 2021, approximately 16.5% of the global population is above the age of 60, who are more likely to undertake home modifications.
- Globally, according to the World Health Organization, about 15% of the population lives with some form of disability, many of whom might require home modifications for accessibility.
- Given these statistics, the potential maximum global target population could include a combination of elderly individuals and people with disabilities, totaling around 2.5-3 billion people globally.
Reasoning
- The target population for this policy includes older adults and individuals with disabilities who require home modifications for safety, security, and accessibility.
- Given the large potential pool of eligible individuals, budget constraints will limit the number of beneficiaries.
- The policy is designed to provide financial relief by excluding distributions from taxable income, thus encouraging more people to modify their homes.
- Selection of interviewees should include various demographics, including individuals already living in accessible accommodations and those yet to make modifications.
- Interviews should also cover people of different socio-economic backgrounds, as this will influence their ability to benefit from the policy.
Simulated Interviews
Retired (Florida)
Age: 72 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I've been wanting to make my bathroom safer, but the cost is daunting.
- This policy would make it financially feasible to make necessary changes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Software Developer (California)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I need to make my home accessible, but my insurance didn't cover all the costs.
- This bill would allow me to use my retirement savings without penalty.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Small Business Owner (Texas)
Age: 62 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- We're planning to retire soon and wish to age in place.
- Modifications are essential, and this bill is quite beneficial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 3 |
Marketing Specialist (New York)
Age: 30 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- I'm currently renting, so home modifications aren't applicable to me.
- This policy won't impact my situation directly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
Retired Teacher (Arizona)
Age: 66 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 10/20
Statement of Opinion:
- Although I'm doing well now, it gives peace of mind to have this option available.
- I see this mostly as a security measure for the future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 7 |
Engineer (Illinois)
Age: 55 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- Having extra funds for home modification would definitely improve our quality of life.
- It would ease a lot of stress post-recovery.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 4 |
Retired Factory Worker (Ohio)
Age: 74 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I've held off on home repairs due to cost.
- This would be a huge help; I could finally make my home safer.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 5 | 3 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 2 |
Graphic Designer (Virginia)
Age: 39 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- We had been saving for modifications, and this policy would ease our burden.
- This makes it more affordable to adapt our home to my sibling's needs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Self-employed Contractor (New York)
Age: 58 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- I have done some modifications, but more are needed.
- This policy would help complete the accessibility improvements without financial stress.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 5 |
Retired Farmer (Iowa)
Age: 85 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- My family has done some modifications, but this policy would make it easier to do more.
- It gives me the flexibility to potentially live more independently.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 3 |
Cost Estimates
Year 1: $2100000000 (Low: $1500000000, High: $2700000000)
Year 2: $2100000000 (Low: $1500000000, High: $2700000000)
Year 3: $2100000000 (Low: $1500000000, High: $2700000000)
Year 5: $2100000000 (Low: $1500000000, High: $2700000000)
Year 10: $2100000000 (Low: $1500000000, High: $2700000000)
Year 100: $2100000000 (Low: $1500000000, High: $2700000000)
Key Considerations
- Potential overlap between disabled and elderly populations could reduce total participation below 70 million individuals, affecting actual usage and costs.
- Income exclusions and deductions further reduce taxable income base, impacting federal revenues.
- Induced demand for home improvements could have positive effects on local economies but negative effects on federal revenues.