The federal government provides bathroom remodeling cost relief to low-income families, senior citizens, disabled individuals, military veterans, and taxpayers.
Numerous financial incentives aim to further government objectives. This article outlines these incentives’ specific goals and describes the available assistance programs.
Critical Points
- Energy efficiency programs assist with installing replacement windows, insulating materials, and water heaters.
- Incentives for reducing water usage encourage homeowners to install eco-friendly toilets, low-flow shower heads, and faucets.
- Health and safety programs provide senior citizens, disabled veterans, and Native Americans with resources to prevent slips and falls.
Bathroom Energy Efficiency
The federal government offers free financial incentives to save energy and protect the environment. These national efficiency programs offer homeowners cost relief for specific bathroom remodeling components.
Homeowners can apply for no-equity home improvement loans. These loans help make the remaining costs of a project more manageable by allowing payment over time.
Efficient Windows
The federal government assists homeowners in installing energy-efficient bathroom windows, which help vent moisture, high humidity, and foul odors.
Homeowners can use federal bathroom window replacement services if the new windows lead to significant energy savings. For better durability, choose fiberglass, aluminum, or vinyl for window materials instead of wood, which can suffer from water damage and rot.
Below are the primary window renewal initiatives.
- Weatherization Assistance Program (WAP)
- Low-Income Home Energy Assistance Program (LIHEAP)
- Energy Efficiency Home Improvement Tax Credit (EEHITC)
- Home Efficiency Rebate Program (HERP)
Efficient Materials
The federal government provides financial assistance for bathroom remodeling that saves gas or electricity. These renovations include installing efficient skylights and ceiling exhaust fans and using insulation and air-sealing materials to reduce energy consumption.
- The Energy Efficient Home Improvement Credit (EEHIC) can lower taxes by up to $3,200 for specific upgrades. The non-refundable credit reduces any tax liability in a given year. It does not require the filer to itemize deductions.
- Apply for the Home Efficiency Rebate Program (HERP) in your home state. HERP provides up to $8,000 towards projects based on their projected energy savings. Low-income families benefit most.
Water Heaters
Several initiatives lower the costs of installing energy-efficient water heaters needed to supply your upgraded shower or bathtub. Who wants to take a cold shower or soak in a freezing tub?
Free water heater programs are a logical extension of any remodeling project. At least three government services might help.
- Weatherization Assistance Program (WAP)
- Energy Efficient Home Improvement Credit (EEHIC)
- High-Efficiency Electric Home Rebate (HEEHRA)
Bathroom Water Usage
The federal government offers free financial incentives to reduce wasteful water consumption while providing more comprehensive grants to homeowners in remote rural areas.
One national and one regional program addresses bathroom water usage and provides significant financial assistance for remodeling costs.
Water Conservation
The Environmental Protection Agency (EPA) supports water conservation rebates that can lower bathroom renovation costs. Showers, toilets, faucets, and tubs use significant amounts of water.
Use the EPA-sponsored WaterSense rebate finder service to locate money-saving fixtures in your area. WaterSense-labeled products meet specifications for efficiency and performance.
- Eco-friendly toilets cut usage with every flush using water velocity rather than volume to eliminate waste in the bowl.
- Low-flow shower heads minimize the use of hot water, saving money on two utility bills at once.
Wastewater
The US Department of Agriculture (USDA) offers bathroom renovation grants to homeowners in areas recognized as Colonia in Arizona, California, New Mexico, and Texas. A Colonia is a designated rural area lacking potable water or adequate sewage systems.
The USDA wastewater grant program provides funding of up to $5,000 per household to support various services, including the following.
- Connect service lines to a residence
- Pay utility hook-up fees
- Install plumbing and related fixtures
- Bathtub or shower
- Sinks
- Commode
- Water heater
Bathroom Health & Safety
The federal government offers free financial incentives to promote health and safety for vulnerable groups. These national well-being programs relieve remodeling costs that make bathrooms safer for these groups.
Medical Deductions
Bathroom renovations addressing health and safety issues may offer tax savings. The IRS allows you to deduct the cost of specific bathroom renovations accommodating your disability from your taxes.
IRS Publication 502 lists deductible medical and dental expenses, including the following home improvements:
- Widening doorways
- Installing handicap-accessible shower stall
- Mounting railings and support bars
- Lowering cabinets and sinks
- Moving electrical outlets and fixtures
The IRS supports three ways to take advantage.
- Disabled individuals with a high-deductible health plan can use a Health Savings Account (HSA) to reimburse themselves using tax-favored funding in future years.
- A Flexible Spending Account (FSA) lets you use your entire annual contribution for eligible expenses at the beginning of the plan year despite the contributions being deducted later.
- Taxpayers can use Schedule A to itemize qualifying medical and dental expenses if they exceed 7.5% of their Adjusted Gross Income.
Safety Grants
The federal government offers grants to eligible homeowners for bathroom remodeling projects aimed at improving health and safety. This section illustrates how financial incentives can reduce walk-in shower and tub installation costs.
Walk-in tubs and showers cater to individuals with mobility difficulties or require additional safety features to bathe independently and comfortably.
Rural Seniors
Low-income seniors living in rural areas might qualify for a government grant to install a walk-in shower or bathtub. Falls are the leading cause of injuries to elderly individuals with poor balance and brittle bones from osteoporosis.
The USDA Section 504 program provides grants of up to $10,000 to remediate health and safety issues. A walk-in tub with a low threshold of entry, built-in handrails, and non-slip flooring reduces the risk of trips and falls.
Military Veterans
Veterans of the US armed forces with service-connected disabilities might qualify for grants to reduce the costs of installing walk-in tubs or showers.
Veterans with physical disabilities may find traditional bathtubs and showers challenging to use. Walk-in tubs or showers can have wide doors, wheelchair-accessible designs, and other adaptive features that cater to their needs.
The Veterans Administration provides several grants that might help.
- Specially Adapted Housing (SAH) grants help recipients live independently in a barrier-free environment.
- Special Housing Adaptation (SHA) grants help recipients with specific service-connected disabilities adapt or purchase a residence to accommodate the impairment.
- Temporary Residence Adaptation (TRA) grants help recipients modify a house owned by a family member.
- Home Improvement and Structural Alterations (HISA) grant provides medically necessary improvements and structural alterations to primary residences.
Native Americans
Low-income American Indian and Alaska Natives living in designated tribal lands might qualify for a government grant to reduce walk-in shower and bathtub expenses.
The Bureau of Indian Affairs Home Improvement Program provides grants of up to $7,500 for conditions that threaten the health and safety of the occupants. A walk-in tub or shower could meet the criteria for at least two reasons:
- An elderly Native American might need to reduce slip and fall risks.
- Tribal members with physical disabilities might need wheelchair accessibility.
Retired Seniors
If enrolled in specific Medicare Advantage Plans (Part C), retired senior citizens with chronic medical conditions might receive assistance with bathroom remodeling to address health and safety concerns.
Special Supplemental Benefits for the Chronically Ill (SSBCI) available through many Medicare Advantage Plans will sometimes include applicable benefits.
- Structural home modifications that minimize risks for future hospitalizations and adverse health events
- Indoor air quality equipment and services to minimize risks associated with cardiac and respiratory diseases
An SSDCI qualifying project might prevent falls (grab bars, elevated toilets, lowered cabinets, and sinks) or remediate mold to improve air quality. Plumbing repairs to prevent mold caused by leaky pipes may also qualify.
