H.R.3698 - Living Organ Donor Tax Credit Act (119th Congress)
Summary
H.R.3698, the Living Organ Donor Tax Credit Act, proposes to amend the Internal Revenue Code of 1986 by introducing a refundable tax credit for individuals who donate life-saving organs. The credit aims to cover costs associated with organ donation, including medical expenses, travel, lodging, lost wages, and legal fees, up to a maximum of $5,000.
The bill also includes amendments to the Public Health Service Act and the National Organ Transplant Act to coordinate with federal living organ donation grants and clarify that the tax credit does not constitute unlawful compensation for organ donation.
The bill specifies that the credit applies to donations of kidneys, livers, lungs, pancreases, intestines, and bone marrow from living donors within the United States, and it takes effect for taxable years beginning after the date of enactment.
Expected Effects
This bill aims to incentivize living organ donation by providing financial relief to donors. It is anticipated to increase the number of organ donations, potentially saving more lives.
By offsetting the financial burden on donors, the bill could encourage more individuals to consider organ donation. The amendments to existing acts will clarify the legal and financial framework surrounding organ donation.
Potential Benefits
- Increased Organ Donation: The tax credit may incentivize more individuals to become living organ donors, addressing the critical shortage of organs available for transplantation.
- Reduced Financial Burden: Donors can receive financial assistance to cover expenses related to donation, such as medical costs, travel, and lost wages.
- Improved Public Health: Increased organ availability can lead to more successful transplants and improved health outcomes for recipients.
- Fair Compensation: The bill acknowledges the sacrifices made by living donors and provides a form of compensation for their contributions.
- Legal Clarity: Amendments to existing acts clarify the legal status of the tax credit and its coordination with other federal programs.
Most Benefited Areas:
Potential Disadvantages
- Potential for Fraud: The refundable tax credit could be subject to fraudulent claims, requiring careful oversight and verification processes.
- Administrative Burden: Implementing and managing the tax credit program may create additional administrative costs for the IRS.
- Limited Impact: The $5,000 limit may not fully cover all expenses for some donors, potentially limiting the incentive effect.
- Equity Concerns: The tax credit primarily benefits those who are able to afford the initial costs of donation, potentially excluding lower-income individuals.
- Complexity: The interaction of this credit with existing federal and state programs may create confusion and complexity for donors.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it seeks to promote public health by incentivizing organ donation. Congress has the power to lay and collect taxes to provide for the general welfare of the United States (Article I, Section 8, Clause 1).
The bill does not appear to infringe upon any specific individual rights or liberties protected by the Constitution or its amendments. The establishment of a tax credit falls within the enumerated powers of Congress.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).