This bill, titled the Multigenerational Family Tax Credit Act of 2026, establishes a new tax credit to help taxpayers cover expenses for modifying their principal residence. The credit is specifically for improvements that enhance the safety, mobility, or accessibility of the home for a qualified relative living with the taxpayer. This initiative aims to support families caring for elderly or disabled family members within their own homes. The credit is limited to a maximum of $8,000 per taxable year and begins to phase out for taxpayers with a modified adjusted gross income exceeding $200,000 , or $400,000 for joint filers . A "qualified relative" must be either age 65 or older or disabled , and must reside with the taxpayer for more than half of the taxable year, while also meeting specific familial relationship requirements. A key feature of this credit is that fifty percent of the allowed amount is refundable , providing financial relief even to those with limited tax liability. To prevent duplicate benefits, expenses claimed for this credit cannot be used for other tax deductions or credits, and the bill includes provisions for annual inflation adjustments to the credit cap starting after 2027.