Living Organ Donor Tax Credit Act
- Sponsor
- Rep. Wilson, Joe [R-SC-2]
- Committees
- Energy and Commerce Committee (primary)
- Last action
- Jun 3, 2025
Bottom line
The bill seeks to increase living organ donation rates by alleviating the financial burden on donors through a federal tax credit, while explicitly maintaining the ethical framework of organ transplantation.
What it actually does
This bill establishes a new refundable federal income tax credit, up to $5,000, for individuals who donate a qualified life-saving organ. The credit covers various donation-related expenses, including medical costs, travel, lodging, legal fees, and lost wages. Crucially, it also amends existing federal law to clarify that this tax credit does not constitute unlawful compensation for organ donation.
Proponents argue
Proponents argue that this legislation is a vital step to address the critical shortage of organs for transplantation by removing significant financial barriers for altruistic living donors. They contend that covering expenses like lost wages and medical follow-up costs will encourage more individuals to donate, ultimately saving lives and improving patient outcomes.
Opponents contend
Opponents might raise concerns about the potential cost to federal revenue from a new refundable tax credit, especially without a specified offset. Some critics could also argue that, despite the bill's explicit legal clarification, any financial incentive, however indirect, could still raise ethical questions about the commodification of human organs or potentially pressure vulnerable individuals into donation.
The bill is exceptionally concise and clearly written, allowing an informed reader to understand its core provisions and implications within minutes.
Section 2(a), inserting new Section 36C into the Internal Revenue Code.
Establishment of the Living Organ Donor Tax Credit
This provision creates a new refundable tax credit for individuals who donate a qualified life-saving organ. The credit is designed to reimburse various costs associated with the donation, including medical expenses, travel, lodging, legal fees, and lost wages, up to a maximum of $5,000 per donor per taxable year. The refundable nature means individuals can receive the credit even if it exceeds their tax liability.
Supporters argue
Supporters argue this credit directly addresses the financial disincentives that prevent many individuals from becoming living organ donors, thereby increasing the pool of available organs and saving lives. It recognizes the altruistic act of donation by mitigating personal financial sacrifice.
Critics contend
Critics might argue that while well-intentioned, the $5,000 cap may not fully cover all expenses for some donors, especially those with significant lost wages or extensive travel, thus limiting its effectiveness. Concerns could also be raised about the overall cost to federal revenue without a clear offset.
Tradeoffs
The bill balances the desire to incentivize life-saving donations with the need to manage federal budget impacts and avoid creating a system that could be perceived as commodifying organs.
Section 2(a), new Section 36C(c) of the Internal Revenue Code.
Scope of Eligible Organs and Donor Conditions
This section defines 'qualified life-saving organ' to include kidneys, livers, lungs, pancreases, intestines, bone marrow, or parts thereof. It explicitly states that the credit is only for living donors (organ removed while donor is alive), requires the donation and transplantation to occur within the U.S. and in accordance with U.S. laws, and excludes any expenses already reimbursed by other parties to prevent double-dipping.
Section 2(b), amending the Public Health Service Act and the National Organ Transplant Act.
Legal Clarification for Tax Credit and Organ Compensation
This provision amends the Public Health Service Act to ensure that receiving this tax credit does not disqualify an individual from federal living organ donation grants. Crucially, it also amends the National Organ Transplant Act (NOTA) to explicitly state that this tax credit is not considered unlawful compensation for organ donation, thereby removing a potential legal ambiguity and protecting donors and transplant professionals.