Overview
Title
To amend the Internal Revenue Code of 1986 to establish a refundable credit for expenses incurred for mobility devices.
ELI5 AI
The Mobility Means Freedom Tax Credit Act is a plan to help people pay for things like wheelchairs and scooters by giving them some money back when they buy these helpful devices. It tries to make it less costly for people who need these things to move around.
Summary AI
H.R. 2320, also known as the “Mobility Means Freedom Tax Credit Act,” proposes to amend the Internal Revenue Code of 1986 by establishing a refundable tax credit for individuals who purchase mobility devices. The credit would cover 50% of the expenses related to buying items such as wheelchairs, scooters, and braces, up to a limit of three devices per year. The bill is intended to help people offset the costs associated with purchasing these essential mobility aids. The amendments will apply to costs incurred after the act is enacted.
Published
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AnalysisAI
Summary of the Bill
The proposed legislation, known as the "Mobility Means Freedom Tax Credit Act," aims to amend the Internal Revenue Code of 1986. Its primary objective is to establish a refundable tax credit for individuals who incur expenses related to purchasing mobility devices. The credit would cover 50% of the costs for qualified mobility devices, including wheelchairs, scooters, and braces, up to three devices per year. This initiative is designed to alleviate the financial burden for those who require such devices for mobility and independence.
Significant Issues
A series of issues arise from the current draft of the bill:
Lack of Monetary Cap: The bill does not impose a maximum monetary limit on the credit. This omission could lead to substantial budgetary impacts if a large number of taxpayers qualify for the credit.
Broad Definition: The definition of "qualified mobility device" is broad, potentially encompassing a wide range of products. This lack of specificity could lead to misuse or ambiguity about what constitutes a qualifying device.
Income Thresholds: The absence of income thresholds or means testing means the credit could benefit individuals who do not need financial assistance, potentially diverting resources from those who need it most.
Household Dynamics: The bill does not clarify how multiple taxpayers in a single household are treated, which could lead to exploitation of the allowance for three devices per year.
No Price Limit on Devices: Without a cap on device prices, individuals might opt for more expensive models to maximize the credit, potentially increasing costs.
Certification: The bill does not specify who determines or certifies whether a device qualifies, leading to possible inconsistencies and challenges in administration.
Confusing Language: Some legislative language regarding the interplay between different credits and deductions could confuse taxpayers.
Impact on the Public
By providing financial assistance for mobility devices, the bill seeks to empower individuals who rely on such equipment for their daily lives. The credit could reduce the financial strain on individuals who need these devices to maintain independence and improve their quality of life. However, without modifications, the bill could result in financial inefficiencies and administrative challenges.
Impact on Stakeholders
A positive impact could be felt by those in need of mobility devices, as the bill provides financial relief that may make such devices more affordable. However, individuals who do not need financial aid might also benefit, potentially depleting resources that could be allocated elsewhere.
The broad definition of "qualified mobility device" might benefit manufacturers and suppliers of these products by potentially expanding their customer base. On the other hand, policymakers and administrators may face challenges due to the bill's lack of clarity and specificity, complicating the implementation and enforcement processes.
In conclusion, while the "Mobility Means Freedom Tax Credit Act" could significantly assist individuals who rely on mobility devices, it requires careful revision to address the highlighted concerns. Doing so would ensure that the legislation efficiently targets its intended beneficiaries and operates within manageable financial and administrative constraints.
Issues
The bill lacks a specified maximum monetary amount for the mobility device credit. This omission could lead to significant budgetary concerns if a large number of taxpayers qualify for it. (Sections: 2, 36C)
The definition of 'qualified mobility device' is broad and may include a wide range of products. More specific criteria are needed to avoid potential misuse or ambiguity regarding what qualifies as a 'mobility device.' (Sections: 2, 36C)
There is no provision for an income threshold or means testing, which could result in the credit disproportionately benefiting individuals who may not need financial assistance. This could raise ethical and financial concerns. (Sections: 2, 36C)
The limitation of the credit to '3 qualified mobility devices per taxable year' does not address how multiple taxpayers within a single household are treated, potentially leading to complications or exploitation of the system. (Sections: 2, 36C)
The credit covers 50% of device costs but does not specify any limit on the price of devices, which could incentivize the selection of more expensive models, escalating costs. (Sections: 2, 36C)
There is no specification regarding who determines or certifies whether a mobility device qualifies, which leaves room for subjective interpretation and potential inconsistencies, posing administrative challenges. (Sections: 2, 36C)
The language concerning 'qualified mobility device expense which would... be taken into account for purposes of any deduction' is unclear, and the interaction between different credits and deductions might lead to taxpayer confusion. (Sections: 2, 36C)
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the Act states that it can be referred to as the "Mobility Means Freedom Tax Credit Act."
2. Mobility device credit Read Opens in new tab
Summary AI
The section introduces a Mobility Device Credit, allowing individuals a tax credit equal to 50% of the cost of purchasing up to three qualifying mobility devices per year, such as wheelchairs, scooters, and braces. This credit cannot be combined with other deductions or credits for the same expenses and applies to payments made after the law is enacted.
36C. Mobility device credit Read Opens in new tab
Summary AI
The section provides a tax credit for individuals equivalent to 50% of the cost of certain mobility devices, such as wheelchairs, scooters, and braces. However, the credit is limited to three devices per year, and expenses used for this credit cannot be used for other deductions or credits.