The Maryland Department of Housing and The Maryland Department of Housing and Community Development (DHCD) administers a State of Maryland tax credit for residents of the state who have renovated a home to be more accessible. The tax credit may be up to 50% of the cost of the renovation up to $5,000, whether it’s your own home, the home of a family member, or a rental property.
To claim this credit, the renovations must have taken place during the prior tax year, and you must demonstrate the costs incurred with receipts, invoices, before and after pictures, etc. Any approved accessibility features will be considered in the calculation for the tax credit amount.
You must be a Maryland resident and be able to show proper documentation of the repairs to qualify. After you have completed your renovation, the following steps are necessary to claim your tax credit: (1) File your taxes for the calendar tax year in which you completed the renovation. (2) Fill out theIndependent Living Tax Credit Application (can be found online at DHCD’s website). (3) Submit your application to DHCD by June 1st of the current calendar year. DHCD will complete its review of your application by August 1st of the current calendar year. (4) Once your application is approved, you must complete and file an amended tax return (Form 502X) with the DHCD tax credit certification attached.
Any renovations that will assist a person in their home can qualify for a tax credit. Some examples of accessibility features include, but are not limited to:
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.