Hearing Aid Assistance Tax Credit Act
- Sponsor
- Rep. Mullin, Kevin [D-CA-15]
- Committees
- Ways and Means Committee (primary)
- Last action
- Mar 3, 2026
Bottom line
The bill creates a new federal tax credit to help middle and upper-middle-income individuals afford hearing aids, aiming to reduce out-of-pocket costs for a common health need.
What it actually does
This bill establishes a new, nonrefundable federal income tax credit of up to $1,000 for individuals who purchase qualified hearing aids. The credit is subject to income limitations, specifically $300,000 for joint filers and heads of household, and $150,000 for other individuals. It can only be claimed once every five years per individual and applies to taxable years beginning after December 31, 2026.
Proponents argue
Supporters argue this bill will make essential hearing aids more accessible and affordable for millions of Americans, improving quality of life, reducing health disparities, and potentially mitigating other health issues associated with untreated hearing loss. They contend that the income limitations ensure the benefit is targeted to those who need assistance but may not qualify for other aid programs, while the five-year restriction prevents abuse.
Opponents contend
Critics may argue that while the intent is laudable, this tax credit represents a new federal spending program that will increase the national debt through reduced tax revenue. They might also contend that a $1,000 credit may not be sufficient to significantly impact the affordability for the lowest-income individuals, and that direct subsidies or expansion of existing health benefits might be more effective or equitable.
The bill is very short and clear, making it highly accessible for any reader to understand its core provisions and implications within a few minutes.
Section 2(a), new Section 25F(a)
Hearing Aid Purchase Tax Credit
This provision establishes a new tax credit for individuals who purchase qualified hearing aids. Taxpayers can claim a credit against their income tax for up to $1,000 of the amount paid for a hearing aid, provided the cost is not compensated by insurance or other means. This directly reduces the tax liability of eligible individuals.
Supporters argue
Supporters argue this credit directly addresses the high cost of hearing aids, which can be a significant barrier for many. By making these devices more affordable, the bill promotes better health outcomes and quality of life for individuals with hearing impairment.
Critics contend
Opponents might argue that while beneficial, this tax credit represents a new tax expenditure that will contribute to the federal deficit. They may also suggest that the $1,000 cap might not be substantial enough to make a real difference for very expensive hearing aids, or that it primarily benefits those already able to afford a significant portion of the cost.
Tradeoffs
The provision balances the goal of improving access to hearing aids with concerns about federal revenue impact. It aims to provide relief without fully subsidizing the cost, requiring individuals to still bear a significant portion of the expense.
Section 2(a), new Section 25F(b)
Income Limitations for Credit Eligibility
This section sets specific income thresholds for eligibility for the hearing aid tax credit. Individuals with a modified adjusted gross income (MAGI) exceeding $300,000 (for joint filers or heads of household) or $150,000 (for all other individuals) are not eligible to claim the credit. MAGI includes certain foreign earned income exclusions.
Section 2(a), new Section 25F(d)
Five-Year Claim Limitation
This provision stipulates that an individual can only claim the hearing aid tax credit once every five taxable years. This means if a taxpayer claims the credit in one year, they cannot claim it again for any of the subsequent four taxable years. This restriction applies per individual, not per household.
Defines 'qualified hearing aid' by referencing specific sections of Title 21 of the Code of Federal Regulations (21 CFR 874.3300 and 874.3305) and requiring authorization under the Federal Food, Drug, and Cosmetic Act for commercial distribution.
Section 2(a), new Section 25F(c)
Why it matters:This is standard legislative practice to ensure that the definition aligns with existing federal regulatory frameworks for medical devices, leveraging the expertise of agencies like the FDA. It avoids the need to redefine complex technical terms in statute.
Case for: Proponents argue that referencing existing FDA regulations ensures that only safe, effective, and properly regulated hearing aids qualify for the credit, preventing the subsidy of unapproved or substandard devices.
Case against: Critics might argue that relying on external regulations makes the bill less transparent for the average reader, who would need to consult additional legal texts to fully understand what products are eligible. This could create confusion for consumers and tax preparers.
Estimated impact: Ensures that the tax credit applies only to FDA-approved hearing aids, maintaining quality and safety standards for eligible devices.
States that the amendments made by this section shall apply to taxable years beginning after December 31, 2026.
Section 2(c)
Why it matters:This is a common legislative practice for effective dates. It is not necessarily evasive but can be missed by a casual reader focusing on the main body of the bill.
Case for: Proponents would argue that a delayed effective date provides taxpayers, manufacturers, and the IRS sufficient time to prepare for the implementation of the new credit, including updating tax forms and guidance.
Case against: Critics might argue that delaying the effective date means that individuals currently facing high hearing aid costs will not receive immediate relief, potentially prolonging financial burdens for those in need.
Estimated impact: Delays the fiscal impact of the credit and the benefit to taxpayers by at least one year from the bill's potential enactment.