Establishes a one-time personal income tax credit for up to $10,000 for the expenses incurred by a resident taxpayer in the course of donating his or her organs for transplantation; repealer

Title of bill

An act to amend the tax law, in relation to establishing a personal income tax credit for organ donations; and to repeal paragraph 38 of subsection (c) of section 612 of such law in relation to the personal income tax modification, reducing federal adjusted income, for organ donations

Purpose

To replace the current organ donation income tax deduction with a one-time personal income tax credit for up to $10,000 for expenses incurred by a living organ donor.

Summary of provisions

Section one amends section 606 of the tax law by adding a new subsection (ccc) which creates a one-time tax credit for living organ donors of up to $10,000 for full time residents who have donated a human organ within the same tax year for qualified expenses which include lodging and travel expenses and lost wages.

Section two repeals paragraph 38 of subsection (c) of section 612 of the tax law which contains a tax deduction for the same purposes and under the same circumstances as the proposed tax credit in section one of the bill.

Justification

There are currently over 10,000 candidates waiting for organ donations in New York State and every year over 3,000 candidates are added to the waiting list. In 2015 there were hundreds of living organ donors in New York including 489 kidney donors and 54 liver donors. Others donated bone marrow and other organs and tissues. These donors give the gift of life and must be recognized and supported. They should not endure a financial burden associated with lost wages, travel and lodging expenses. While New York State has had a tax deduction for these individuals, given this is a once in a life time event and the benefit given and costs accumulated are both so big, this bill makes the deduction into a much more beneficial tax credit. on those who choose to undertake the act of donating organs or tissue. This tax credit is intended to both incentivizing and mitigating the costs of human organ donation.

Many states around the nation have established tax deductions for live organ donors similar to New York, A few have gone the extra step and created the more helpful tax credits as this bill does. New York offers taxpayers many tax credits for a whole host of things like college tuition, real property taxes and dependent care costs. New York has many people waiting on list for years in need of a donated organ. As a state we should do all we can to remove barriers to live organ donation and support those who give the gift of life.

Legislative history

New Bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to tax years commencing on and after such date.