Clinical Trial Payment Exclusion

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

Summary#

This bill adds a new tax rule to the Internal Revenue Code to exclude certain payments to clinical trial participants from gross income. It creates a new section, 139J, that says qualified clinical trial payments are not taxable. "Qualified clinical trial payment" means money paid as compensation for taking part in an approved clinical trial or money that reimburses or pays reasonable and necessary expenses related to participation by the individual or their dependent. The bill uses the Public Health Service Act definition of an "approved clinical trial," but applies the phrase "disease or condition" where that law uses "life-threatening disease or condition." "Dependent" uses the meaning from existing tax law (section 152). The exclusion would apply to amounts paid after December 31, 2025. The bill also says those same qualified clinical trial payments must not be counted as income or resources when deciding eligibility for any Federal program or for State or local programs that are funded in whole or in part with Federal funds.

What it means for you#

  • If you or a dependent receive payments for participating in an approved clinical trial, those payments would not be taxable income under this bill.
  • Those payments also would not be counted as income or resources when determining eligibility or benefit amounts for federal programs or federally funded state or local programs.
  • The rule would apply to payments made after December 31, 2025.

Expenses#

No publicly available information on estimated federal costs, revenue effects, or budgetary offsets appears in the bill text or metadata provided.

Proponents' View#

No publicly available information on supporters' arguments or stated reasons for the bill appears in the bill text or metadata provided.

Opponents' View#

No publicly available information on opponents' arguments or stated concerns appears in the bill text or metadata provided.