Helping Encourage Animal Rescue through Tax Credits Act of 2026

What it does

• •Creates a new refundable tax credit equal to 50 percent of qualified animal adoption fees paid during a taxable year, with a maximum credit of $500 per animal.
• •Defines 'qualified animal adoption fees' as fees paid to tax-exempt organizations under section 501(c)(3) or state and local government agencies for adopting animals held as pets.
• •Limits eligibility to U.S. resident individuals and excludes adoption fees for animals held for food production or commercial purposes.
• •Makes conforming amendments to the Internal Revenue Code and federal statute to reflect the new tax credit provision.

Why it matters

• •The bill aims to reduce financial barriers to pet adoption by offsetting adoption costs through the tax system, potentially increasing animal rescue and adoption rates.
• •The credit is refundable, meaning eligible individuals can receive the credit value even if they owe no income tax, expanding benefit access.

Who is affected

• •Individual U.S. taxpayers (non-resident aliens excluded) who adopt pets from qualifying sources.
• •Tax-exempt animal rescue organizations and state and local government animal shelters that process adoptions and collect adoption fees.

What happens next

The bill was referred to the House Committee on Ways and Means for consideration and would require committee approval and further legislative action to advance.