This bill proposes to amend the Internal Revenue Code of 1986, expanding the definition of medical care to include certain veterinary expenses for pets and service animals. This change would allow individuals to use pre-tax funds from health savings accounts (HSAs) and flexible spending accounts (FSAs) to cover these costs, aiming to provide financial relief to pet owners. For service animals, all amounts paid for veterinary care or a pet health insurance plan would be treated as medical care expenses without limit. For other pets, the bill allows up to $1,000 for veterinary care and an additional $1,000 for a pet health insurance plan per pet. These monetary limits for pets are designed to be adjusted annually for inflation, starting in 2025. The term "veterinary care" is broadly defined to encompass diagnosis, treatment, prevention of disease, and related items or services authorized by a licensed veterinarian. This provision would apply to all eligible expenses paid or incurred after the bill's enactment, aiming to make pet healthcare more accessible and affordable.
Referred to the House Committee on Ways and Means.
Taxation
PAW Act of 2025
USA119th CongressHR-1842| House
| Updated: 3/4/2025
This bill proposes to amend the Internal Revenue Code of 1986, expanding the definition of medical care to include certain veterinary expenses for pets and service animals. This change would allow individuals to use pre-tax funds from health savings accounts (HSAs) and flexible spending accounts (FSAs) to cover these costs, aiming to provide financial relief to pet owners. For service animals, all amounts paid for veterinary care or a pet health insurance plan would be treated as medical care expenses without limit. For other pets, the bill allows up to $1,000 for veterinary care and an additional $1,000 for a pet health insurance plan per pet. These monetary limits for pets are designed to be adjusted annually for inflation, starting in 2025. The term "veterinary care" is broadly defined to encompass diagnosis, treatment, prevention of disease, and related items or services authorized by a licensed veterinarian. This provision would apply to all eligible expenses paid or incurred after the bill's enactment, aiming to make pet healthcare more accessible and affordable.