To amend the Internal Revenue Code of 1986 to provide a nonrefundable personal credit to individuals who donate certain life-saving organs.

May 19, 2005

Mr. WILSON of South Carolina (for himself, Mr. BROWN of South Carolina, Mr. MILLER of Florida, Mr. NORWOOD, Mr. FOLEY, and Ms. ROS-LEHTINEN) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

To amend the Internal Revenue Code of 1986 to provide a nonrefundable personal credit to individuals who donate certain life-saving organs.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Living Organ Donor Tax Credit Act of 2005'.

SEC. 2. CREDIT FOR DONATION OF CERTAIN LIFE-SAVING ORGANS.

(a) In General- Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25B the following new section:

`SEC. 25C. DONATION OF CERTAIN LIFE-SAVING ORGANS.

`(a) In General- In the case of an individual who donates a qualified life-saving organ of such individual for transplantation into another individual during the taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year the sum of--

`(1) unreimbursed costs paid by the taxpayer in connection with such transplantation, and

`(2) any lost wages of the individual in connection with such transplantation.

`(b) Limitation- The credit allowed under subsection (a) with respect to any individual for any taxable year shall not exceed $5,000.

`(c) Definitions and Special Rules- For purposes of this section--

`(1) QUALIFIED LIFE-SAVING ORGAN- The term `qualified life-saving organ' means kidney, liver, lung, pancreas, intestine, bone marrow, or any part thereof.

`(2) RESTRICTION TO LIVING DONORS- Credit shall not be allowed under subsection (a) unless the individual is alive when the qualified life-saving organ is removed from such individual.

`(3) DONATION- Except as provided in regulations by the Secretary, an organ shall not be treated as donated unless and until such organ is removed from the donor.'.

(b) Public Health Service Act Amendments-

(1) FEDERAL LIVING ORGAN DONATION GRANTS REDUCED BY TAX CREDIT- Section 377(d) of the Public Health Service Act is amended by inserting `that a tax credit is allowed, or can reasonably be expected to be allowed, under section 25C of the Internal Revenue Code of 1986 or' before `that payment has been made'.

(2) TAX CREDIT NOT UNLAWFUL COMPENSATION- Section 301(c)(2) of the Public Health Service Act is amended by inserting `the tax credit allowed under section 25C of the Internal Revenue Code of 1986 or' after `does not include'.

(c) Clerical Amendment- The table of sections of such subpart is amended by inserting after the item relating to section 25B the following new item:

`Sec. 25C. Donation of certain life-saving organs.'.

(d) Effective Date-

(1) IN GENERAL- Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

(2) PUBLIC HEALTH SERVICE ACT AMENDMENTS- The amendments made by subsection (b) shall take effect on the date of the enactment of this Act.

END