A bill to amend the Internal Revenue Code of 1954 to provide individuals a credit against income tax for amounts paid or incurred by the taxpayer for alterations to his principal residence in order to make such residence more suitable for handicapped family members.

Amends the Internal Revenue Code to allow individuals a nonrefundable income tax credit for expenses paid or incurred to make alterations to their residences to make them more accessible to, and usable by, a handicapped individual who is either the taxpayer, spouse, or a dependent of the taxpayer. Limits the amount of such credit, for each such handicapped individual, to the lesser of $1,000 or an amount which, when added to previous year's credits, does not exceed $5,000. Reduces the amount of such credit by one-half of the amount by which the adjusted gross income of the taxpayer exceeds $20,000 ($35,000 in the case of married individuals filing jointly).

Requires that the handicapped individual live in the principal residence for which the alterations are made for not less than a nine month period during the taxable year.