H.R. 4184: To amend the Internal Revenue Code of 1986 to exclude from gross income certain compensation to clinical trial participants, and for other purposes.

This bill proposes changes to the Internal Revenue Code that would affect the compensation received by participants in clinical trials. The key provisions of the bill are summarized as follows:

Exclusion of Compensation from Gross Income

The bill introduces a new section (referred to as section 139J) to the Internal Revenue Code, which states that:

• Any compensation received by an individual for participating in an approved clinical trial, or for reimbursing necessary expenses related to that participation, will not be counted as gross income.
• This definition of "qualified clinical trial payment" includes amounts paid as compensation for participation or reimbursement for related expenses incurred by either the individual or their dependents.

Definition of Approved Clinical Trials

In the context of this bill, an "approved clinical trial" is defined according to existing regulations in the Public Health Service Act. It specifically pertains to trials intended for life-threatening diseases or conditions.

Clerical Amendment

The bill also includes an amendment to update the table of sections of the Internal Revenue Code to reflect the addition of section 139J regarding clinical trial payments.

Effective Date

The changes outlined in this bill are set to take effect for payments made after December 31, 2025.

Impact on Federal Program Eligibility

Additionally, any amounts received as qualified clinical trial payments will not be counted as income or resources when determining eligibility for:

• Federal assistance programs
• State or local programs that receive federal funding

This means that receiving such payments would not affect an individual's eligibility for benefits under these programs.

Relevant Companies

None found