H.R.1842 - People and Animals Well-being Act of 2025; PAW Act of 2025 (119th Congress)
Summary
H.R.1842, the People and Animals Well-being Act of 2025 (PAW Act of 2025), proposes amending the Internal Revenue Code of 1986 to allow certain veterinary expenses for pets and service animals to be treated as amounts paid for medical care for purposes of a health savings account (HSA) or flexible spending account (FSA). The bill allows up to $1,000 in veterinary expenses and $1,000 for pet health insurance to be considered medical expenses for tax purposes. It defines 'pet' by referencing the Agriculture Improvement Act of 2018 and 'service animal' by referencing the Code of Federal Regulations.
Expected Effects
If enacted, this bill would effectively allow individuals to use pre-tax dollars from their HSA or FSA accounts to pay for veterinary care and pet health insurance, up to specified limits. This could reduce the overall cost of pet ownership for those with such accounts. The change would apply to expenses incurred after the enactment date.
Potential Benefits
- Allows individuals to use pre-tax funds for pet and service animal healthcare.
- Potentially reduces the financial burden of pet ownership, encouraging responsible pet care.
- May incentivize pet owners to obtain health insurance for their pets.
- Could lead to increased utilization of veterinary services, benefiting the veterinary care industry.
- Provides financial relief for owners of service animals, recognizing their essential role.
Potential Disadvantages
- May disproportionately benefit higher-income individuals who are more likely to have HSAs or FSAs.
- Could slightly reduce federal tax revenue due to increased deductions.
- The $1,000 limit may not fully cover significant veterinary expenses.
- Potential for increased complexity in tax filings and administration.
- May be perceived as unfairly favoring pet owners over those without pets.
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution (Preamble), as it aims to improve the well-being of both people and animals by providing tax benefits for veterinary care. Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes to provide for the general welfare of the United States. The bill falls under Congress's power to tax and spend for the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).