Mobility Means Freedom Tax Credit Act

Bill Number

H.R. 2320

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-03-25: Referred to the House Committee on Ways and Means.

Last Updated

2025-08-30T08:05:36Z

AI-Generated Summary

Purpose

The "Mobility Means Freedom Tax Credit Act" (H.R. 2320) aims to provide financial relief to individuals by offering a tax credit for costs related to purchasing or acquiring mobility devices. This encourages accessibility for people with disabilities or mobility challenges by reducing the after-tax cost of such devices.

Key Provisions

• Credit Amount and Eligibility: Eligible individuals can claim a refundable tax credit equal to 50% of the costs paid during the tax year for qualified mobility devices. (A refundable credit means it can reduce tax owed to zero and result in a payment from the government if the credit exceeds taxes due.)
• Definition of Qualified Mobility Devices: Includes manual or powered wheelchairs, scooters, walkers, gait trainers, crutches, canes, artificial limbs (legs or arms), and braces for legs, arms, backs, or necks. It also covers any added features or enhancements to these devices.
• Annual Limit: The credit applies to no more than three qualified mobility devices per tax year.
• Prevention of Double Benefits: Expenses used for this credit cannot also be claimed as deductions or other tax credits, ensuring no overlap in benefits.
• Effective Date: Applies to expenses incurred after the date the bill becomes law.

Significant Changes to Existing Law

• Adds a new section (36C) to the Internal Revenue Code (IRC) under subpart C of part IV, subchapter A, chapter 1, inserting it after the existing premium tax credit (section 36B).
• Makes technical updates to related IRC sections (e.g., section 6211 for tax deficiency calculations) and U.S. Code (title 31, section 1324 for advance payments) to include the new credit.
• Introduces the first dedicated refundable tax credit specifically for mobility devices, expanding beyond general medical expense deductions (which are not refundable and have income-based limits).

Potential Impacts

• On Citizens: Lowers the financial barrier for obtaining essential mobility aids, potentially improving quality of life for people with disabilities, injuries, or chronic conditions. It could benefit lower-income individuals through refunds, even if they owe little or no taxes.
• On Government Agencies: The Internal Revenue Service (IRS) will need to administer the credit, including verifying claims and processing refunds, which may increase administrative workload and reduce federal tax revenue (estimated cost not specified in the bill).
• On International Relations: No direct impact, as this is a domestic tax policy focused on U.S. taxpayers.

Main Stakeholders Affected

• Individuals with Mobility Needs: Primary beneficiaries, including those with disabilities, elderly persons, or injury recovery patients who rely on these devices.
• Device Manufacturers and Providers: Could see increased demand due to the tax incentive, potentially boosting sales of wheelchairs, braces, and related products.
• Taxpayers and Families: Broader group affected, as the credit reduces overall tax revenue, indirectly impacting public funding.
• Government Entities: IRS for implementation; Congress and Treasury Department for oversight and potential future adjustments.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens tax incentives for health-related expenses under the IRC, aligning with existing medical deduction rules but making this one more accessible via its refundable nature. It requires clear IRS guidance on what qualifies as "enhancements" to avoid disputes.
• Constitutional: Supports equal protection principles by aiding accessibility for disabled individuals, consistent with the Americans with Disabilities Act (ADA), without raising major separation-of-powers concerns as it operates within Congress's taxing authority.
• Political: Bipartisan sponsorship (Democrats and Republicans) highlights cross-party support for disability issues; could set precedent for similar credits on other assistive technologies, influencing future tax policy debates on social welfare spending.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Cohen, Steve [D-TN-9]

Cosponsors (7)

Rep. Carter, Troy A. [D-LA-2], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Carson, André [D-IN-7], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Dingell, Debbie [D-MI-6], Rep. Adams, Alma S. [D-NC-12], Rep. Scholten, Hillary J. [D-MI-3]

Recent Actions

• 2025-03-25: Referred to the House Committee on Ways and Means.
• 2025-03-25: Introduced in House
• 2025-03-25: Introduced in House

Bill Versions

• Mobility Means Freedom Tax Credit Act — issued 2025-03-25 — PDF (3 pages)