Tax Credit for Kidney Donors
The States of Idaho and Utah have taken the lead in providing tax credit relief for un-reimbursed expenses related to organ donation. A Federal Tax Credit for Kidney Donors is part of a bill currently in consideration in Congress.
There is a great deal of expense involved in the process of live organ donation. Much of this expense is not going to be covered by Medical Insurance. Although policies and exclusions differ, the bottom line is that the organ donor is usually hurt financially by his altruistic act. The States of Utah and Idaho are two that have recognized this problem already and offer tax credits to help offset this cost. There is no nationwide “Tax Credit of Kidney Donors.”
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In the 2007 session of Congress, a bill was introduced that would modify the tax code and allow incidental expenses to be covered as Medical expenses in the case of donor transplants. It would also allow a tax credit for certain expenses that were not recovered through insurance. The idea is to free the Kidney, or other organ donor, from as much financial loss as possible as a result of their generosity.
Many bills have been submitted to Congress on this issue. All have crashed and burned so far before becoming law. There is no real apparent reason other than there is some nervousness about creating a market where the poor donate organs as a means to derive income. Still, a new bill has been introduced and is working its way through committee.
The Living Organ Donor Tax Credit Act of 2009 would create a tax credit for organ donations. The bill is known as HR 218. The amount of the tax credit is up to $5,000 minus the reimbursed cost derived from life insurance and such. A bill, however, is not law as we all learned in elementary school and high school.
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The Living Organ Donor Tax Credit Act of 2009 is currently in the morass known as committee. There the bill is contemplated, debated, modified and public comment is taken. In this case, the bill is sitting both the Committee on Ways and Means and the Committee on Energy and Commerce as of late 2009 and have been in both committees for 10 plus months. In short, things aren’t looking good for quick passage.
They also point out that there are more people waiting on lists for donations of organs such as kidneys than there are donors stepping forward to allow their own organs to be taken while they are still living. The emotional impact of the donation process can not be underestimated. The kidney is a unique organ because of its duplication. We can get along with just one, which gives us a spare with could give to save another life. This is not an easy choice to make, but once it is made, it should not result in financial ruin. This is an area that should be addressed and HR218 is a start. Interested people can track this bill’s progress through their own representatives in Congress.