The "IVF Access and Affordability Act" establishes a tax credit of up to $20,000 for individuals and $40,000 for joint filers to offset the costs of assisted reproductive technology (ART) expenses, subject to income limitations.
Michael Lawler
Representative
NY-17
The IVF Access and Affordability Act introduces a tax credit to help individuals and couples offset the costs of assisted reproductive technology (ART) expenses, such as in vitro fertilization (IVF). The credit can cover up to $20,000 in ART expenses, or $40,000 for joint filers if both individuals incur expenses, but is reduced for those with higher incomes, phasing out completely for individuals earning over $300,000 and joint filers earning over $600,000. This credit aims to make fertility treatments more accessible by reducing the financial burden on eligible families. The credit is effective for taxable years beginning after the date the bill is enacted.
New Tax Break for IVF: Up to $20K Credit for Fertility Treatments
The "IVF Access and Affordability Act" is all about making fertility treatments less of a financial gut-punch. Here’s the deal: it introduces a tax credit designed to take some of the sting out of the hefty costs associated with assisted reproductive technology (ART), like IVF.
Cash Back for Fertility Costs
This bill lets you claim a tax credit for what you spend on ART, up to $20,000. If you're married and both of you are racking up those bills, you can claim up to $40,000, provided you're filing jointly. (SEC. 2). So, if you're shelling out big bucks for IVF, this could mean a significant chunk of change back in your pocket come tax time. For example, a single teacher spending $18,000 on IVF could potentially get that entire amount credited back, directly reducing their tax bill.
Who Gets a Break, and Who Doesn't?
Now, there's some fine print. If you're making over $200,000 (or $400,000 for joint filers), the credit starts to shrink. By the time you hit $300,000 (or $600,000 for couples), it's gone completely. (SEC. 2). Think of it this way: a software engineer with a high salary might see a smaller credit, while a couple who are both nurses might get the full benefit, as long as their combined income stays below the threshold.
Real-World Rollout
This isn't a free-for-all. You can't double-dip – if your insurance covers part of the costs, you can only claim the credit for what you paid out-of-pocket. And if you don't use the full credit in one year, you can carry it forward for up to five years, which is handy given how unpredictable these treatments can be. (SEC. 2). Imagine a small business owner who has a slow year; they can spread the tax benefit over several years, making it a bit easier to manage the financial ups and downs of fertility treatments.
The Bottom Line
This tax credit is designed to make IVF and other fertility treatments more accessible. By easing the financial burden, more people might be able to consider these options. The five-year carry-forward is a smart move, acknowledging that fertility journeys aren't always straightforward. It's a practical approach to a very real, and often very expensive, challenge many people face.