California Legislature introduces tax credit for in vitro fertilization expenses

California Assembly Bill 547, introduced on February 11, 2025, aims to provide financial relief to Californians undergoing in vitro fertilization (IVF) by establishing a tax credit for qualified expenses not covered by insurance. The bill defines "qualified expenses" to include costs associated with IVF procedures, such as medication, ultrasounds, egg retrieval, and implantation.

The primary goal of the bill is to alleviate the financial burden faced by individuals and couples seeking fertility treatments, which can be prohibitively expensive. The legislation mandates that the Franchise Tax Board report annually to the Legislature on the number of taxpayers utilizing the credit and the total dollar value of credits issued, ensuring accountability and transparency in its implementation.

While the bill has garnered support for addressing a significant healthcare issue, it has also sparked debates regarding its long-term fiscal implications. Critics express concerns about the potential strain on state finances, especially given the bill's expiration date set for December 1, 2030, unless renewed. Proponents argue that the credit could lead to increased access to fertility treatments, ultimately benefiting families and the state's demographic stability.

The introduction of AB 547 reflects a growing recognition of the challenges faced by those seeking reproductive assistance and highlights the state's commitment to supporting family planning initiatives. As the bill progresses through the legislative process, its potential impact on California's healthcare landscape and economy will be closely monitored.