ISAR’s Model Spay/Neuter Tax Deduction Statute

i October 5, 2009

About a decade ago, again ahead of the curve, ISAR came up with the suggestion that Congress amend the Internal Revenue Code to provide a tax deduction for the cost of spay/neuter. (A copy of ISAR’s Model Statute can be found HERE.) In the introduction to ISAR’s Model Statute we set forth the policy reasons for the deduction, and argued that it’s a “win-win” situation, as indeed it is.

Sadly, nothing came of ISAR’s groundbreaking idea—until now.

A few months ago, Representative McCotter introduced H.R. 3501 (the “Humanity and Pets Partnered Through the Years (‘HAPPY’) Act”), entitled “A bill to amend the Internal Revenue Code of 1986 to allow a deduction for pet care expenses.” The Bill has been referred to the House Committee on Ways and Means.

The Bill recites that Congress finds “63 percent of United States households own a pet” and that “the Human-Animal bond has been shown to have positive effects upon people’s emotional and physical well-being.”

Accordingly, the IRC amendment would allow a “deduction for the taxable year an amount equal to the qualified pet care expenses of the taxpayer during the taxable year for any qualified pet of the taxpayer,” limited to $3,500. (The statute goes on to define “qualified pet care expenses” and “qualified pet.”)

Because ISAR is a tax-exempt 501(c)(3) organization we can’t lobby for legislation, but we certainly can observe that, given our Model Spay/Neuter Tax Deduction Statute, H.R. 3501 is a welcome development—but for one problem. Had ISAR’s input been sought in the drafting of H.R. 3501, we would have suggested that the deductible “qualified pet care expenses” mandatorily include spay/neuter. In other words, no reimbursement for any expenses unless included in them was the cost of spay/neuter.

Perhaps Representative McCotter, or his co-sponsors will see fit to amend their amendment.