Hearing Aid Assistance Tax Credit Act
- Bill Number
- H.R. 7770
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-03-03: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-04-28T08:06:38Z
AI-Generated Summary
Summary of H.R. 7770: Hearing Aid Assistance Tax Credit Act
Purpose
This bill aims to make hearing aids more affordable by providing a tax credit to individuals who purchase them, targeting those with hearing loss who might otherwise face high out-of-pocket costs not covered by insurance.
Key Provisions
- Tax Credit Amount: Eligible individuals can claim a credit of up to $1,000 against their federal income tax for the cost of qualified hearing aids purchased in a taxable year, excluding amounts reimbursed by insurance or other sources.
- Income Limits: The credit is unavailable if the individual's modified adjusted gross income (a measure of income that includes certain exclusions like foreign earned income) exceeds $300,000 for heads of household or joint filers, or $150,000 for single filers or others.
- Definition of Qualified Hearing Aid: The device must meet U.S. Food and Drug Administration (FDA) standards for safety and effectiveness (as outlined in specific federal regulations), be approved for commercial sale under the Federal Food, Drug, and Cosmetic Act, and be intended for use by the taxpayer or their dependent (for whom a personal exemption deduction is allowed).
- Frequency Limitation: The credit can only be claimed once every five years per individual, requiring an election (a formal choice) on their tax return, as specified by IRS regulations.
- No Double Benefits: Expenses qualifying for this credit cannot also be deducted or credited under other tax provisions.
- Effective Date: Applies to tax years starting after December 31, 2026.
Significant Changes to Existing Law
This legislation adds a new section (25F) to the Internal Revenue Code of 1986, creating a dedicated non-refundable tax credit for hearing aids. Previously, there was no specific federal tax incentive for hearing aid purchases, though general medical expense deductions might apply under certain conditions. It also updates the code's table of sections for easy reference.
Potential Impacts
- On Citizens: Could reduce financial barriers for approximately 48 million U.S. adults with hearing loss, encouraging earlier use of hearing aids and potentially improving quality of life, especially for lower- and middle-income families. Higher-income individuals are excluded to focus benefits on those most in need.
- On Government Agencies: The Internal Revenue Service (IRS) will need to implement new rules for claiming the credit, including processing elections and verifying qualifications, which may increase administrative workload. It could slightly reduce federal tax revenue, though the impact is likely modest given the $1,000 cap and income limits.
- On International Relations: No direct effects, as this is a domestic tax policy focused on U.S. taxpayers and FDA-regulated devices.
Main Stakeholders Affected
- Individuals with Hearing Loss: Primary beneficiaries, including taxpayers and their dependents who purchase qualifying devices.
- Hearing Aid Manufacturers and Providers: May see increased demand due to the incentive, potentially boosting sales.
- Taxpayers and IRS: All filers are indirectly affected through potential changes in tax forms and revenue collection; the IRS handles enforcement.
- Health Advocacy Groups: Organizations supporting accessibility for disabilities may support or monitor implementation.
Notable Legal, Constitutional, or Political Implications
- Legal: Aligns with existing tax code structures for targeted credits (e.g., for energy-efficient homes or electric vehicles) and relies on FDA authority for device qualifications, ensuring regulatory consistency. It prevents abuse through income caps, election rules, and double-benefit prohibitions.
- Constitutional: No apparent challenges; it involves Congress's power to tax and spend under Article I, promoting general welfare without infringing on rights.
- Political: Reflects bipartisan interest in affordable healthcare access, potentially appealing to aging populations and disability advocates. As an introduced bill (not yet law), its passage could influence future tax reform debates on medical affordability, but it faces scrutiny over costs during budget discussions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Kiggans, Jennifer A. [R-VA-2], Rep. Grijalva, Adelita S. [D-AZ-7]
Recent Actions
- 2026-03-03: Referred to the House Committee on Ways and Means.
- 2026-03-03: Introduced in House
- 2026-03-03: Introduced in House
Bill Versions
- Hearing Aid Assistance Tax Credit Act — issued 2026-03-03 — PDF (4 pages)