House Bill No. by Representative Wilder proposes amendments to the individual income tax law regarding the construction code retrofitting deduction. The bill increases the maximum deduction amount from $5,000 to $10,000 per retrofitted residential structure and expands the scope of eligible costs to include those associated with compliance with the "fortified home" standards set by the Insurance Institute for Business and Home Safety. The deduction remains at 50% of the costs incurred for retrofitting, and taxpayers must provide proof of compliance with the State Uniform Construction Code, total project costs, and that the project was voluntary when claiming the deduction.

The bill retains existing provisions that prohibit rental properties from qualifying for the deduction and disallow the value of costs covered by state, municipal, or federal financial incentives. The changes will take effect for taxable periods beginning on or after January 1, 2026. Overall, this legislation aims to encourage homeowners to invest in retrofitting their residences to enhance safety and compliance with updated construction standards.

Statutes affected:
HB145 Original: 47:293(2)