Income tax credit for in vitro fertilization medical expenses. (FE)
Impact
This bill represents a significant shift in state law by introducing a financial incentive for those undergoing IVF treatments, acknowledging the rising costs associated with infertility treatments. The proposed tax credit aims to make these necessary medical procedures more accessible to families facing fertility challenges. By establishing these credits, the state acknowledges the financial burden of reproductive health issues and strives to alleviate the economic pressures on affected individuals and couples.
Summary
Assembly Bill 702 seeks to create a nonrefundable income tax credit to assist individuals with the expenses related to in vitro fertilization (IVF). Specifically, the bill allows a tax credit for unreimbursed medical expenses that an individual or their spouse incurs directly from consultations, procedures, and prescribed medications associated with IVF. The maximum credit available is capped at $5,000 per tax year, while eligibility depends on the claimant's adjusted gross income, which must not exceed $100,000 for individual filers or $200,000 for couples filing jointly.
Contention
Notably, the bill may face contention surrounding the limitations on what qualifies for the tax credit. Specifically, it excludes expenses for insurance coverage, travel, lodging, and costs covered through health savings accounts. Critics might argue that these exclusions could limit the bill's effectiveness at providing real financial relief. Additionally, debates may arise regarding income eligibility thresholds, as some may view the income limits as insufficient or overly restrictive for those in need.