Making your home safer and more accessible is a valuable investment, but it can come with significant costs. Fortunately, Michigan homeowners may have access to various tax breaks, grants, and financial incentives to help offset these expenses. This guide provides an overview of federal, state, and local programs available to assist with accessibility upgrades.
Disclaimer: We aren’t tax professionals and none of this article should be considered as tax advice. It’s important to discuss your tax situation with a licensed professional to determine any savings for which you may qualify.
Federal Tax Incentives
Medical Expense Deductions
If your home modifications are medically necessary, you may be able to deduct the costs as medical expenses on your federal tax return. Eligible modifications include installing ramps, widening doorways, adding grab bars, and modifying bathrooms for accessibility.
Requirements:
- The upgrades must be primarily for medical care related to a disability.
- You must itemize these expenses on your tax return.
- The deduction applies to medical expenses that exceed 7.5% of your adjusted gross income (AGI).
Home Improvement Tax Credit for Disabled Access
This credit is available to businesses that make their facilities accessible. Self-employed individuals or home-based business owners may qualify if they’re modifying their home for business purposes and accessibility.
Energy Efficiency Tax Credits
Homeowners may be eligible for federal tax credits for energy-efficient improvements. This can apply to accessibility upgrades if they include energy-saving components, such as energy-efficient doors or windows.
Michigan-Specific Programs
Property Tax Exemptions and Reductions
While Michigan doesn’t have a specific property tax exemption solely for accessibility modifications, homeowners may benefit indirectly from tax relief through programs like the Principal Residence Exemption (PRE) and the Homestead Property Tax Credit. These programs can offer tax relief for homeowners who make accessibility improvements.Michigan State Housing Development Authority (MSHDA) Programs
MSHDA offers various housing programs, including grants and loans, that may assist with home modifications for individuals with disabilities or seniors.
These programs include:
- Homeowner Rehabilitation Program: This program can sometimes be used for modifications that enhance accessibility.
- Aging in Place Program: This program may provide assistance with home modifications to improve mobility and accessibility for seniors.
Contact Information:
Address: 735 E. Michigan Ave, P.O. Box 30044, Lansing, MI 48909
Toll-Free Phone: 1-855-MI-MSHDA (1-855-646-7432)
Email: MSHDA@michigan.gov
Website: www.michigan.gov/mshda
Area Agencies on Aging (AAA)
Local AAAs across Michigan offer home modification assistance and can connect seniors with resources to make their homes more accessible. These resources may include financial assistance for modifications and information on state, federal, and local funding options.
Contact Information:
Area Agencies on Aging Association of Michigan
Address: 523 W. Ionia Street, Lansing, MI 48933
Phone: 517-886-1029
Email: info@4ami.org
Website: www.4ami.org
Region IV Area Agency on Aging
Address: 2900 Lakeview Avenue, St. Joseph, MI 49085
Info-Line for Aging & Disabilit: 800-654-2810
Email: info@areaagencyonaging.org
Website: www.areaagencyonaging.org
Michigan Medical and Disability-Related Deductions
Michigan follows federal guidelines for medical deductions, allowing homeowners to claim medical expenses, including those related to accessibility changes due to disability or medical conditions. These deductions can be itemized on Michigan state income tax returns.
Specific Programs for Seniors or People with Disabilities
Programs like the MI Choice Waiver Program and Veterans Affairs programs may offer assistance with home modifications for eligible individuals.
Local City or County Programs
Some cities or counties in Michigan offer specific grants or tax incentives for home accessibility improvements.
Steps to Take Advantage of These Programs
- Contact MSHDA: Inquire about funding options for home rehabilitation and accessibility modifications.
- Reach Out to Your Local Area Agency on Aging: Obtain information about financial assistance for accessibility improvements.
- Consult with Your Local Government: Explore grants or assistance programs for home accessibility in your city or county.
- Consult a Tax Professional: Seek guidance on medical deductions for home modifications to ensure eligibility and understand all applicable tax benefits.
By utilizing these federal, state, and local programs, Michigan homeowners may be able to make their homes more accessible and potentially reduce the financial burden of necessary modifications.
