Home Lead Safety Tax Credit Act of 2025

Under Section 2(a), which adds Section 36C(a)(1) of the Internal Revenue Code, taxpayers can receive a tax credit equal to 50 percent of the costs paid or incurred for lead hazard reduction activities on an eligible dwelling unit. This financial relief helps individuals offset the expenses of making their homes safer.

Under Section 2(a), which adds Section 36C(c)(1)(A)(i) through (v), covered costs include lead assessments by certified risk assessors, permanent abatement measures like removing lead paint or pipes, interim control measures, cleanup and testing, and necessary occupant relocation costs. This provision supports comprehensive safety measures and protects families while work is being done.

Under Section 2(a), which adds Section 36C(c)(2)(A), an eligible dwelling unit includes any residential unit placed in service before 1978 and located in the United States, regardless of whether it is subsidized or assisted under a Federal program. This broadens the potential pool of housing that can be made safe for residents.

Under Section 2(a), which adds Section 36C(b)(1), the credit is limited to a maximum of $3,000 for lead abatement measures and $1,000 for interim lead control measures per taxable year. Furthermore, Section 36C(b)(3) sets a cumulative lifetime limit of $4,000 per residence. These caps may leave taxpayers to cover a significant portion of the total out-of-pocket costs for extensive lead removal.

Under Section 2(a), which adds Section 36C(c)(4), no credit is allowed unless a certified inspector or risk assessor provides written documentation proving the unit meets specific criteria after the work is complete. Taxpayers must bear the burden of hiring certified professionals to secure this documentation to qualify for the credit.