Sponsors (4)
The bill creates a substantial targeted tax credit for ART expenses (with carryforward) that helps many who pay large out‑of‑pocket costs, but it leaves out those with little tax liability, phases out for higher earners, and excludes expenses reimbursed by insurance, reducing benefits for insured families.
Parents and individuals who pay for assisted reproductive technology (ART) can reduce their federal income tax liability by up to $20,000 for single filers and $40,000 for joint filers for qualifying ART expenses.
Taxpayers whose qualifying ART expenses exceed their tax liability can carry unused credit amounts forward for up to five years, increasing the likelihood they will realize the tax benefit over time.
Taxpayers and insurers: the credit excludes expenses reimbursed by insurance, which prevents double‑dipping and targets the benefit to those with net out‑of‑pocket ART costs.
Low‑income taxpayers with little or no federal income tax liability may not be able to use the nonrefundable credit and therefore could receive little or no benefit even if they incur qualifying ART expenses.
Middle‑ and higher‑income taxpayers (phaseouts begin above $200,000 single / $400,000 joint) who still face high ART costs may be reduced or fully ineligible for the credit.
Insured couples whose ART costs are largely covered by insurance may be denied credit for reimbursed amounts and therefore could receive little additional tax relief despite paying some ART‑related costs.
Based on analysis of 2 sections of legislative text.
Adds a nonrefundable tax credit up to $20,000 ($40,000 joint) for assisted reproductive technology expenses with AGI phaseouts and 5-year carryforward.
Official title: To amend the Internal Revenue Code of 1986 to provide an income tax credit for fertility treatments.
Introduced March 5, 2025 by Michael Lawler · Last progress March 5, 2025
Creates a new nonrefundable tax credit for assisted reproductive technology (ART) expenses, letting eligible taxpayers (the taxpayer, spouse, or a dependent) claim up to $20,000 per taxpayer ($40,000 for joint filers when both spouses incur expenses). The credit phases out for higher-income filers, is reduced by any insurance reimbursements, cannot duplicate other tax benefits, and unused amounts may be carried forward up to five years. The rule takes effect for taxable years beginning after enactment.