H.R. 4639: Infertility Treatment Affordability Act of 2025

This bill, known as the Infertility Treatment Affordability Act of 2025, proposes changes to the U.S. tax code to provide a tax credit for individuals undergoing infertility treatments. Here’s a breakdown of the main components of the bill:

Tax Credit for Infertility Treatments

The bill creates a new tax credit that allows eligible individuals to receive a credit equal to 50% of the qualified expenses related to infertility treatment incurred during the tax year.

Qualifications for the Tax Credit

• Eligible Individuals: The individuals must be diagnosed with infertility by a licensed physician. Additionally, individuals who have undergone fertility preservation procedures prior to medical treatments that may cause infertility are also eligible.
• Qualified Expenses: These are defined as payments made for medical treatments directly related to infertility, provided they are administered by a licensed practitioner following a medical diagnosis of infertility.

Limitations on the Credit

• Dollar Limitation: The credit amount is capped at a limit that is defined by existing tax codes and is adjusted based on previous credits claimed in earlier years.
• Income Limitation: The credit amount is reduced for those with an adjusted gross income above a specific threshold, estimated to be $40,000. The reduction is proportional to the amount over this threshold.
• Refundability: Up to $5,000 of the credit may be refundable, meaning individuals can receive the credit as a cash refund if they owe less in taxes than the credit amount.
• No Double Benefit: Expenses that have already been reimbursed or covered by insurance cannot also be claimed for the tax credit. This applies to expenses paid through any federal, state, or local programs.

Carrying Forward the Credit

If an individual’s allowable credit exceeds the tax limits for the taxable year, the unused portion can be carried forward to future tax years. However, this carryforward can only extend for up to five additional years.

Effective Date

The provisions of the bill would take effect for tax years beginning after December 31, 2024.

Conforming Amendments

To implement this new credit, the bill includes conforming amendments to ensure it fits within the existing tax structure and codifications of the Internal Revenue Code.

Relevant Companies

• MDG (Medidata Solutions, Inc.) - A company involved in providing digital solutions for clinical trials, which may see a flow of clients needing data management for fertility treatments.
• IVF (IVF Specialists, Inc.) - A company directly providing services related to in vitro fertilization and fertility treatments, likely to see increased demand from patients taking advantage of the new tax credit.