HB 84 – Livable Homes Tax Credit Cameron McNamee Ohio Department of Health Violence and Injury Prevention Program March 19,

Home Modifications… What Do We Know? Studies show that home modification is an effective fall prevention intervention, particularly for older adults who are deemed high risk. Every $1 in home safety modifications results in a savings of $3 in direct medical costs. The average cost nationally of including one zero-step entrance when building a new home is $150. Estimates of the average cost to Ohio taxpayers to add a ramp to an existing home ranges from $2,800 to $5,000. 2

HB 84 – What Does It Do? Authorizes a nonrefundable personal income tax credit for a homeowner renovating a home to improve its accessibility or purchasing or constructing an accessible home. Authorizes a nonrefundable personal income tax credit for a construction contractor that constructs an accessible home or structure. What is a nonrefundable tax credit? A tax credit that can't reduce the amount of tax owed to less than zero. If the credit were able to reduce the amount of tax owed to less than zero, the taxpayer would be entitled to a payment from the government. 3

HB 84 – What Does It Do? Renovation credit equals 50% of the cost of the renovation, up to $5,000 credit. Purchase/construction credit shall equal the purchase price of the new residence or the costs incurred in constructing the new residence or residential structure, not to exceed five thousand dollars. Limits annual award of credits to $200,000 for home renovations and $100,000 for the purchase or construction of accessible, new homes. 4

HB 84 – What Does It Do? Requires the Department of Development to prescribe accessibility and "universal visitability" guidelines for the purpose of the credit. Universal Visitability: at least one no-step entrance doors and hallways wide enough to navigate through a bathroom on the first floor big enough to get into in a wheelchair, and close the door. 5

Livable Homes in Other States Georgia – Disabled Person Home Purchase or Retrofit Credit Virginia - Livable Home Tax Credit (formally Home Accessibility Credit)  Between 2006 and 2010, the Virginia LHTC Program provided approximately $300,000 in credits to improve the accessibility and visitability of Virginia homes. Additionally, the number of taxpayers taking advantage of the credit has doubled since Pennsylvania (Alleghany County) Residential Visitability Design Tax Credit Program 6

Livable Homes Tax Credit 129 th General Assembly Bill introduced on 9/21/2011 by Rep. Stinziano (D) and Rep. Grossman (R) – HB 332 Sponsor Hearing (1/18/2012) Ms. Grossman said accessibility features have been shown to reduce falls among the senior population, and added that fall- related issues will become a more significant problem as the number of Americans over age 65 is expected to double in the next 25 years. Ms. Grossman also recounted the difficulties she faced last year when she was in a wheelchair. 7

Livable Homes Tax Credit 129 th General Assembly Proponent Testimony (1/25/2012) o Sue Hetrick, public policy director of the Ability Center of Greater Toledo, testified in support of the proposal, saying "visitability" was a priority for her organization. o Paul Jarvis, a public policy representative with the Ohio Developmental Disabilities Council, said the bill increases opportunities for people with disabilities to be fully included in community life while serving as a sound piece of legislation. 8

Livable Homes Tax Credit 129 th General Assembly Elizabeth Thompson, an MS activist and ambassador for the Ohio Buckeye Chapter of the National Multiple Sclerosis Society, said she has had MS since she was 22 and now is 60 years old, adding that she worked outside her home until 2004 when she went on Social Security and due to fatigue and inability to walk any distance. Robert Doersam, vice chair of Ohio Statewide Independent Living Council, submitted written proponent testimony. He talked of the importance of establishing Visitability features to make it easier for people with mobility impairments to navigate their own homes and other structures while visiting neighbors, friends and associates. 9

Livable Homes Tax Credit 130 th General Assembly Bill introduced on (2/26/2013) Referred to the House Ways and Means Committee (2/27/2013) Chair, Rep. Peter Beck District House Ways and Means Committee:

Moving Forward Economic Outlook in Ohio is better. Remember! A credit is a tax expenditure. Support from disability community. Need additional support from the older adult fall prevention advocates and home builders. OIPP Policy Brief on home modifications. 11