Tax Deductions for Pet-Care Expenses Proposed Pet-care expenses would be tax deductible under a new measure introduced by U.S. Rep. Thaddeus McCotter (R-Mich.). House Resolution 3501, commonly referred to as the Humanity and Pets Partnered Through the Years, or HAPPY Act, would amend the Internal Revenue Code to allow an individual to deduct up to $3,500 for qualified pet care expenses. Qualified pet care expenses is defined as amounts paid in connection with providing care (including veterinary care) for a qualified pet other than any expense in connection with the acquisition of the qualified pet.