H.R. 3698: Living Organ Donor Tax Credit Act

This bill, known as the Living Organ Donor Tax Credit Act, aims to amend the Internal Revenue Code to establish a tax credit for individuals who donate certain life-saving organs. Below is a breakdown of the provisions of the bill:

Tax Credit for Organ Donation

The bill proposes a refundable tax credit for individuals who donate a qualified life-saving organ during the taxable year. The credit is designed to help cover costs associated with the donation process. The following expenses are included:

• Costs related to transplantation: Any costs incurred directly tied to the transplantation procedure.
• Travel, lodging, and logistical expenses: Costs associated with traveling for the donation and any necessary lodging.
• Medical expenses: Costs for medical care related to the donation, including follow-up care.
• Legal and paperwork costs: Expenses for any legal matters or documentation required for the donation.
• Lost wages: Compensation for any wages lost due to the donation process.

Limitations on the Tax Credit

The maximum tax credit an individual can claim is capped at $5,000 for each taxable year. This means that while eligible expenses can total more than this amount, only up to $5,000 can be claimed as a tax credit.

Definitions and Special Rules

The bill provides definitions for certain terms used in relation to the tax credit:

• Qualified life-saving organ: This refers to organs such as kidneys, livers, lungs, pancreases, intestines, and bone marrow, or parts thereof.
• Living donors only: The credit is only applicable to individuals who are alive when their organ is removed for donation.
• Legal compliance: The donation and transplant must adhere to U.S. laws to qualify for the credit.
• Donation condition: An organ will not be considered “donated” until it has been physically removed from the donor.
• No double reimbursement: Any amounts reimbursed by any parties cannot be included when calculating eligible expenses.

Amendments to Related Acts

The bill also makes amendments to existing laws regarding organ donation:

• It adds a provision to the Public Health Service Act, requiring that individuals who receive federal living organ donation grants must have or expect to have the tax credit under this act.
• It clarifies that the tax credit will not be viewed as unlawful compensation under the National Organ Transplant Act.

Effective Date

The proposed amendments will take effect for taxable years starting after the law is enacted. However, the amendments related to public health service and national organ transplant laws will take effect immediately upon enactment.

Relevant Companies

None found.