NY State Senate Bill Aiming to Assist Companion Owners With The Exorbitant Veterinary Costs

An Act To Amend The Tax Law, In Relation To Creating A Tax Credit For Certain Household Pet Expenses

The Proposed Tax Credit Will Be Given To An Individual Household For A Maximum Credit Of $150 For Everyday Regular Expenses And Another Maximum Credit Of $300 For Medical Or Veterinary Expenses For A Maximum Of Two Pets. The Total Combined Maximum Credit Would Be $450 For One Pet Per Year And $900 For Two Pets Per Year.

The Cost Of Veterinary Prices Has Risen By Over 60% Over The Past Year, And Pet Food Prices Rose 23% From 2020 To 2023. In 2022, The Average Cost Of Food In 2021 Was $310 For Cats And $339 For Dogs. The American Pet Products Association (Appa) Industry Trends Demonstrate That Pet Expenditures Are Continually Growing Each Year, From $123.6 Million In 2021 To An Estimated $150.6 Million In 2024. With Inflation And Unemployment On The Rise, Pet Owners Are Being Straddled With Costly Expenses In Caring For Their Pets, Often Going Into Debt.

View the Entire Bill Below:

                STATE OF NEW YORK

        ________________________________________________________________________

                                         9808–A

                    IN SENATE

                                      April 6, 2026

Introduced  by  Sens.  FERNANDEZ,  SEPULVEDA  –  read twice and ordered printed, and when printed to be committed to the Committee  on  Budget and  Revenue  — committee discharged, bill amended, ordered reprinted as amended and recommitted to said committe AN ACT to amend the tax law, in relation to creating a  tax  credit certain household pet expenses

The  People of the State of New York, represented in Senate and Assembly, do enact as follows:

     1    Section 1. Section 606 of the tax law  is  amended  by  adding  a  new

     2  subsection (uuu) to read as follows:

     3    (uuu) Credit for certain household pet expenses. (1) General. An indi-

     4  vidual taxpayer shall be allowed a credit for taxable years beginning on

     5  or  after  the first of January next succeeding the date this subsection

     6  takes effect against the tax imposed by this article  for  the  cost  of

     7  owning  household pets. The amount of the credit shall be for the actual

     8  cost of pet ownership for up to two household pets, but shall not exceed

     9  the maximum credit of one hundred fifty dollars  for  everyday  expenses

    10  and  three hundred dollars for medical or veterinary expenses per house-

    11  hold pet per taxable year for a maximum total of  nine  hundred  dollars

    12  per taxable year.

    13    (2) Definitions. The terms:

    14    (a)  “household  pet”  shall  mean any dog or cat kept for the primary

    15  purpose of companionship that is normally  maintained  in  or  near  the

    16  household of the owner or person who cares for such domesticated animal,

    17  provided  that keeping such animal is not in violation of any applicable

    18  provisions of federal, state or local  law.  The  term  “household  pet”

    19  shall not mean:

    20    (i)  any  dog or cat confined to the premises of any public or private

    21  hospital devoted solely to the treatment of sick animals.

    22    (ii) any dog or cat confined for the purposes of research to the prem-

    23  ises of any college or other educational or research institution.

    24    (iii) any dog or cat confined to the premises of any person,  firm  or

    25  corporation  engaged  in  the  business  of breeding or raising dogs for

         EXPLANATION–Matter in italics (underscored) is new; matter in brackets

                              [ ] is old law to be omitted.

                                                                   LBD04132-02-6

        S. 9808–A                          2

     1  profit and licensed as a class A dealer  under  the  Federal  Laboratory

     2  Animal Welfare Act.

     3    (iv)  any  “police  work  dog”  or  “detection  dog” as such terms are

     4  defined in section one hundred eight of the agriculture and markets law.

     5    (b) “actual cost of pet ownership” shall mean:

     6    (i) medical and veterinary expenses, which shall include, but  not  be

     7  limited  to,  annual  exams,  medications,  emergency care, and tests as

     8  deemed necessary by veterinarians; and

     9    (ii) everyday expenses which shall include, but  not  be  limited  to,

    10  food, crate, leashes, litter boxes, litter, harnesses, collars, grooming

    11  supplies, toys, and other items deemed essential for pet care-taking.

    12    (3)  Proof of claim. The commissioner may require a qualified taxpayer

    13  to furnish proof of ownership of the household pets  and  proof  of  the

    14  actual  cost of pet ownership in support of their claim for credit under

    15  this subsection.

    16    (4) When credit allowed. The credit provided for  in  this  subsection

    17  shall  be  allowed  with  respect  to the taxable year, commencing after

    18  taxable years beginning on or after the first of January next succeeding

    19  the date this subsection takes effect, in which the pet is owned.

    20    § 2. This act shall take effect immediately and  shall  apply  to  pet

    21  adoptions  in  taxable years beginning on and after the first of January

    22  next succeeding the date on which it shall have become a law.

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NEW YORK STATE SENATE
INTRODUCER’S MEMORANDUM IN SUPPORT
submitted in accordance with Senate Rule VI. Sec 1

BILL NUMBER: S9808A

SPONSOR: FERNANDEZ

TITLE OF BILL:

An act to amend the tax law, in relation to creating a tax credit for certain household pet expenses

PURPOSE OR GENERAL IDEA OF BILL:

The proposed tax credit will be given to an individual household for a maximum credit of $150 for everyday regular expenses and another maximum credit of $300 for medical or veterinary expenses for a maximum of two pets. The total combined maximum credit would be $450 for one pet per year and $900 for two pets per year.

SUMMARY OF PROVISIONS:

Section 1 amends section 606 of the tax law by adding a new subsection (qqq) to establish the parameters of the tax credit, state the eligibility date, and to provide definitions.

Section 2 sets the effective date.

JUSTIFICATION:

The cost of veterinary prices has risen over 60% over the past year, and pet food prices rose 23% from 2020 to 2023. In 2022, the average cost of food in 2021 was $310 for cats and $339 for dogs. The American Pet Products Association (APPA) industry trends demonstrate that pet expenditures are continually growing each year, from $123.6 million in 2021 to an estimated $150.6 million in 2024. With inflation and unemployment on the rise, pet owners are being straddled with costly expenses in caring for their pets- often going into debt.

The 2022 AVMA Pet Ownership and Demographics Sourcebook reported that an average of $326 was spent on annual veterinary care in 2021-bringing this expense close to 33% of total household spending on pets. A U.S.

News survey found that 76% of respondents went into debt to save their pet’s lives and 63% of respondents said veterinary bills are their biggest source of pet debt. Additional data showcases that in 2020, households with one cat averaged $248 on yearly veterinary care and households with two or more dogs averaged $391.  Given the hundreds of dollars spent for cat and dog expenses each year, a tax credit for cat and dog owners will provide much needed monetary relief.

PRIOR LEGISLATIVE HISTORY:

New legislation.

EFFECTIVE DATE:

This act shall take effect immediately and shall apply to pet adoptions in taxable years beginning on and after the first of January next succeeding the date on which it shall have become a law.