Overview
Title
To direct the Secretary of Housing and Urban Development to establish a universal design standards certification system and to establish a refundable tax credit for individuals and groups that construct or renovate buildings and residences, and for other purposes.
ELI5 AI
H.R. 8547 is like giving a sticker and a prize to people who make buildings easy for everyone to use, like making sure everyone can enter and move around easily. It also helps them get some money back if they spend on making those changes, but it's a little tricky because not all the rules are clear yet.
Summary AI
H.R. 8547 proposes the creation of a certification system for universal design standards, led by the Secretary of Housing and Urban Development. This system aims to ensure buildings and residences are accessible to people of all abilities. The bill also introduces a refundable tax credit for those who construct or renovate buildings to meet these standards. Additionally, it mandates regular updates to the design standards and reports to Congress on the progress of accessible housing in the United States.
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AnalysisAI
General Summary of the Bill
The bill titled "Universal Design Standard Tax Incentive Act," introduced in the House of Representatives during the 118th Congress's second session, aims to promote accessibility standards across the United States. It proposes two primary initiatives: establishing a universal design standards certification system and creating a refundable tax credit for individuals and organizations that design, build, or renovate properties to meet these standards. The bill assigns the duty of setting up the certification system to the Secretary of Housing and Urban Development, while the tax credit would be incorporated into the Internal Revenue Code.
Summary of Significant Issues
Several issues arise concerning the detailed implementation and implications of the bill:
Lack of Funding Clarity: The bill does not specify the funding requirements for establishing and maintaining the certification system. This omission raises concerns about potential budget overruns or wasteful spending.
Undefined Standards: The bill lacks a precise definition of what constitutes "universal design standards." This ambiguity could lead to inconsistencies in application and certification.
Potential Bias in Tax Credits: There is a significant discrepancy between the tax credit percentages: 50% for renovations and 20% for new construction. This disparity could disproportionately encourage renovations over new builds.
Oversight and Monitoring: The bill does not detail a mechanism for monitoring or overseeing the validity of tax credit claims. Without such a system, there is potential for misuse or abuse of the credit.
Geographical Bias in Certification: Requiring licensed inspectors for certification could inadvertently favor professionals located near the Department of Housing and Urban Development, potentially creating an uneven playing field.
Impact on the Public
Broadly, the bill aims to encourage more accessible and inclusive building designs, which could be beneficial for many residents, including individuals with disabilities, elderly citizens, and those with varying physical abilities. By incentivizing universal design, the bill could gradually increase the stock of accessible housing and commercial properties, improving quality of life for many.
However, the lack of clear funding sources and oversight mechanisms could result in inefficient use of resources or unintended bias in tax credit distributions between new constructions and renovations. Additionally, geographical advantages in acquiring certified inspectors could skew accessibility improvements towards more urban areas where inspectors might be more prevalent.
Impact on Specific Stakeholders
Property Owners and Developers: They may benefit from the tax credit, but the higher incentive for renovations might divert focus and resources away from new construction projects.
Individuals with Disabilities and Elderly Populations: This group stands to gain significantly in terms of having more accessible housing options, improving their daily comfort and accessibility needs.
Government Agencies: Agencies involved would need to coordinate efforts between multiple departments, which, if managed effectively, could foster collaboration but also risk inefficiency without clear directives and funding.
Licensed Inspectors and Related Professionals: These stakeholders might see an increase in business due to a new demand for certification inspections, though this could also disadvantage smaller firms not located near influential oversight bodies.
Overall, the bill's focus on accessibility is well intentioned and potentially transformative, though its operational ambiguities and fiscal oversight require further clarity to mitigate risks of inefficiency or inequity in its application.
Issues
The bill does not specify the amount of funding required to establish and maintain the certification system established by the Secretary of Housing and Urban Development, which could lead to potential budget overruns or wasteful spending. This issue is outlined in Section 2.
The text does not clearly define what constitutes 'universal design standards', leaving room for ambiguity and potential inconsistencies in implementation. This is primarily discussed in Section 2 and Section 5.
The provision allowing a 50 percent credit for renovation expenses, which is significantly higher than the 20 percent credit for new construction, might induce bias towards renovations over new constructions. This issue is presented in Section 3.
There is no mention of a monitoring or oversight mechanism to ensure claims are valid and expenses meet the criteria outlined in the tax credit section, which could lead to potential abuse. This is noted in Section 3.
The requirement for licensed inspectors to verify applications under the certification system could potentially favor inspectors who are in proximity to the Department of Housing and Urban Development, possibly creating a bias. This is mentioned in Section 2.
The lack of a cap or limit on the amount of expenses that can qualify for the tax credit could potentially lead to excessive claims, as outlined in Section 3.
The phrase 'appropriate congressional committees' is not clearly defined in Section 5, which might cause ambiguity regarding which committees receive the required reports as per Section 4.
The processes for re-certification and potential costs associated with it are not detailed, potentially imposing financial burdens on property owners. This issue is found in Section 2.
There is repetition and potential redundancy in the descriptions of the first and second reports specified in Section 4, which could suggest inefficiencies in evaluating the progress over time.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of this act establishes its short title, which is the “Universal Design Standard Tax Incentive Act.”
2. Certification Read Opens in new tab
Summary AI
The section of the bill establishes a system where dwelling or commercial units can be certified as meeting universal design standards by the Secretary of Housing and Urban Development. It involves forming a working group to develop standards, setting a timeline for certification, and creating a label for certified units, while requiring the use of licensed inspectors to verify applications for certification.
3. Universal Design Standard Tax Credit Read Opens in new tab
Summary AI
The section introduces a new tax credit called the Universal Design Standard Credit. It allows taxpayers to claim a credit on their taxes for a portion of the expenses involved in designing, constructing, or renovating buildings to meet universal design standards, with specific rules about how this credit interacts with other tax benefits and adjustments.
30E. Universal design standard credit Read Opens in new tab
Summary AI
The Universal Design Standard Credit offers a tax credit to individuals and businesses for expenses related to the universal design of buildings. This credit covers 20% of costs for new constructions and 50% for renovations, but it reduces the property’s basis and cannot be combined with other credits for the same expense.
4. Reports to Congress Read Opens in new tab
Summary AI
The section outlines that the Secretary, along with the Commissioner, is required to report to Congress twice: first, within 5 years, to detail the progress and coordination in increasing accessible housing for people with disabilities and seniors, and second, within 10 years, to provide a detailed evaluation and recommendations for the program's improvement.
5. Definitions Read Opens in new tab
Summary AI
The text provides definitions for certain terms used in the Act, including “Agency” referring to the Internal Revenue Service, “Commissioner” as the Commissioner of the IRS, and “Secretary” as the Secretary of the Department of Housing and Urban Development. It also defines “covered agency” with examples like the Department of Agriculture and Health and Human Services, and explains “universal design standards” as guidelines ensuring accessibility for all.