North Carolina 2025-2026 Regular Session

North Carolina House Bill H663 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 663
	3	+	H D
	4	+	HOUSE BILL DRH10172-MRf-106
	5	+
5	6
6	7
7	8		Short Title: Living Donor Protection Act. (Public)
8		-	Sponsors: Representatives Shepard, Wheatley, G. Pierce, and Campbell (Primary
9		-	Sponsors).
10		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
11		-	Referred to: Health, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the
12		-	House
13		-	April 3, 2025
14		-	H663 -v-1
	9	+	Sponsors: Representative Shepard.
	10	+	Referred to:
	11	+
	12	+	DRH10172 -MRf-106
15	13		A BILL TO BE ENTITLED 1
16	14		AN ACT TO PROTECT LIVING DONORS FROM POTENTIAL INSURANCE 2
17	15		DISCRIMINATION, TO PROVIDE AN INCOME TAX CREDIT FOR UNREIMBURSED 3
18	16		MEDICAL EXPENSES RESULTING FROM CERTAIN ORGAN AND MARROW 4
19	17		DONATIONS, AND TO PROVIDE UP TO THIRTY DAYS' PAID LEAVE TO STATE 5
20	18		EMPLOYEES AND OTHER STATE -SUPPORTED PERSONNEL WHO SERVE AS 6
21	19		LIVING ORGAN DONORS AND UP TO SEVEN DAYS ' PAID LEAVE FOR BONE 7
22	20		MARROW DONORS. 8
23	21		The General Assembly of North Carolina enacts: 9
24	22		10
25	23		PART I. INSURANCE PROTECTIONS 11
26	24		SECTION 1.(a) G.S. 58-3-25 is amended by adding a new subsection to read: 12
27	25		"(d) No insurer shall refuse to insure or to continue to insure an individual; limit the 13
28	26		amount, extent, or kind of coverage available to an individual; charge an individual a different 14
29	27		amount for the same coverage; or otherwise discriminate against an individual in the offering, 15
30	28		issuance, cancellation, price, or conditions of a policy, or in the amount of coverage provided 16
31	29		under a policy, based solely and without any additional actuarial risks on the status of an 17
32	30		individual as a living organ donor. This subsection shall apply to health benefit plans and life, 18
33	31		accident and health, disability, disability income, and long-term care insurance policies. For the 19
34	32		purposes of this subsection, the phrase "a living organ donor" shall mean a living individual who 20
35	33		donates one or more of that individual's human organs, including bone marrow, to be medically 21
36	34		transplanted into the body of another individual." 22
37	35		SECTION 1.(b) This section is effective 30 days after it becomes law and applies to 23
38	36		insurance contracts issued, renewed, or amended on or after that date. 24
39	37		25
40	38		PART II. TAX CREDIT 26
41	39		SECTION 2.(a) Part 2 of Article 4 of Subchapter I of Chapter 105 of the General 27
42	40		Statutes is amended by adding a new section to read: 28
43	41		"§ 105-153.12. Credit for live organ donation. 29
44	42		(a) Definitions. – The following definitions apply in this section: 30
45	43		(1) Human organ. – Human bone marrow or any organ of a human, including the 31
46		-	intestine, kidney, liver, lung, or pancreas. 32 General Assembly Of North Carolina Session 2025
47		-	Page 2 House Bill 663-First Edition
48		-	(2) Live organ donation. – A donation by a living individual of one or more of the 1
49		-	individual's human organs to another human to be transplanted using a 2
50		-	medical procedure to the body of another individual. 3
51		-	(3) Live organ donation expenses. – The total amount of the expenses listed in 4
52		-	this subdivision that are incurred by the taxpayer, that are directly related to a 5
53		-	live organ donation, and that are not reimbursed to the taxpayer by any person. 6
54		-	An expense is "directly related" if it is incurred due to a live organ donation 7
55		-	procedure or due to evaluation, recovery, follow-up visits, or rehospitalization 8
56		-	associated with a live organ donation procedure. The expenses are: 9
57		-	a. Lost wages. 10
58		-	b. Transportation, lodging, and meals. 11
59		-	(4) Lost wages. – All monetary payments from employment or services that are 12
60		-	taxable as income under the Code and that are not reimbursed through another 13
61		-	source, such as sick pay or short-term disability benefits. The term does not 14
62		-	include capital gains, IRA distributions, pensions, annuities, unemployment 15
63		-	compensation, State workers' compensation benefits, medical retirement 16
64		-	benefits, or social security benefits. 17
65		-	(b) Credit. – A taxpayer who makes a live organ donation or who is allowed to claim as 18
66		-	a dependent a person who makes a live organ donation is allowed a credit against the tax imposed 19
67		-	by this Part equal to the lesser of the live organ donation expenses or five thousand dollars 20
68		-	($5,000). For the purposes of this section, "dependent" means a qualifying child or qualifying 21
69		-	relative as defined in section 152 of the Code. 22
70		-	(c) Limitation. – The credit allowed under this section may not exceed the amount of tax 23
71		-	imposed by this Part for the taxable year reduced by the sum of all other credits allowable, except 24
72		-	tax payment made by or on behalf of the taxpayer. 25
73		-	(d) Carryforward. – Any unused portion of a credit allowed in this section may be carried 26
74		-	forward for the succeeding five years." 27
75		-	SECTION 2.(b) G.S. 105-153.5(a) reads as rewritten: 28
76		-	"(a) Deduction Amount. – In calculating North Carolina taxable income, a taxpayer may 29
77		-	deduct from adjusted gross income either the standard deduction amount provided in subdivision 30
78		-	(1) of this subsection or the itemized deduction amount provided in subdivision (2) of this 31
79		-	subsection. The deduction amounts are as follows: 32
80		-	… 33
81		-	(2) Itemized deduction amount. – An amount equal to the sum of the items listed 34
82		-	in this subdivision. The amounts allowed under this subdivision are not 35
83		-	subject to the overall limitation on itemized deductions under section 68 of 36
84		-	the Code: 37
85		-	… 38
86		-	c. Medical and Dental Expense. – The amount allowed as a deduction for 39
87		-	medical and dental expenses under section 213 of the Code for that 40
88		-	taxable year. No deduction is allowed for live organ donation expenses 41
89		-	for which a credit was taken under G.S. 105-153.12. 42
90		-	…." 43
91		-	SECTION 2.(c) G.S. 105-160.3(b) reads as rewritten: 44
92		-	"(b) The tax credits allowed under G.S. 105-153.9 or G.S. 105-153.12 may not be claimed 45
93		-	by an estate or trust." 46
94		-	SECTION 2.(d) This section is effective for taxable years beginning on or after 47
95		-	January 1, 2025. 48
96		-	49
97		-	PART III. PAID LEAVE FOR STATE EMPLOYEES 50 General Assembly Of North Carolina Session 2025
98		-	House Bill 663-First Edition Page 3
99		-	SECTION 3.(a) Article 2 of Chapter 126 of the General Statutes is amended by 1
100		-	adding a new section to read: 2
101		-	"§ 126-8.7. Paid leave for State employees and State-supported personnel for organ 3
102		-	donation. 4
103		-	(a) Full-Time Employees. – The State Human Resources Commission shall adopt rules 5
104		-	and policies to provide that a permanent, full-time State employee may take, in addition to any 6
105		-	other leave available to the employee, up to (i) 30 days of paid leave for the purposes of serving 7
106		-	as a living organ donor and (ii) seven days for serving as a bone marrow donor. The employee 8
107		-	must have been continuously employed by the State for at least 12 months immediately preceding 9
108		-	the first request for paid organ or bone marrow donation leave. 10
109		-	(b) Part-Time Employees. – The State Human Resources Commission shall adopt rules 11
110		-	and policies to provide that a permanent, part-time State employee may take, in addition to any 12
111		-	other leave available to the employee, a prorated amount of up to (i) 30 days of paid leave for the 13
112		-	purposes of serving as a living organ donor and (ii) seven days for serving as a bone marrow 14
113		-	donor. The employee must have been continuously employed by the State for at least 12 months 15
114		-	immediately preceding the first request for paid organ or bone marrow donation leave. 16
115		-	(c) Program Requirements. – The paid leave for organ or bone marrow donation 17
116		-	authorized by this section: 18
117		-	(1) Is available without exhaustion of the employee's sick and vacation leave. 19
118		-	(2) Is in addition to, and not in lieu of, shared leave under G.S. 126-8.3, or other 20
119		-	leave authorized by federal or State law. 21
120		-	(3) May not be used for retirement purposes. 22
121		-	(4) Has no cash value upon termination from employment. 23
122		-	(d) Applicability. – This section applies to all (i) State employees and (ii) State-supported 24
123		-	personnel, with the appropriate governing board adopting rules and policies to provide paid leave 25
124		-	for organ donation to its employees as provided by this section. 26
125		-	(e) Reporting. – By April 1, 2026, and then annually thereafter, the State Human 27
126		-	Resources Commission, the State Board of Education, the State Board of Community Colleges, 28
127		-	and all State agencies, departments, and institutions shall annually report to the Office of State 29
128		-	Human Resources on the paid organ donation leave program." 30
129		-	SECTION 3.(b) G.S. 126-5 is amended by adding a new subsection to read: 31
130		-	"(c22) The provisions of G.S. 126-8.7 shall apply to all State employees, public school 32
131		-	employees, and community college employees." 33
132		-	34
133		-	PART IV. EFFECTIVE DATE 35
134		-	SECTION 4. Except as otherwise provided, this act is effective when it becomes 36
135		-	law. 37
	44	+	intestine, kidney, liver, lung, or pancreas. 32
	45	+	(2) Live organ donation. – A donation by a living individual of one or more of the 33
	46	+	individual's human organs to another human to be transplanted using a 34
	47	+	medical procedure to the body of another individual. 35
	48	+	H.B. 663
	49	+	Apr 1, 2025
	50	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	51	+	Page 2 DRH10172-MRf-106
	52	+	(3) Live organ donation expenses. – The total amount of the expenses listed in 1
	53	+	this subdivision that are incurred by the taxpayer, that are directly related to a 2
	54	+	live organ donation, and that are not reimbursed to the taxpayer by any person. 3
	55	+	An expense is "directly related" if it is incurred due to a live organ donation 4
	56	+	procedure or due to evaluation, recovery, follow-up visits, or rehospitalization 5
	57	+	associated with a live organ donation procedure. The expenses are: 6
	58	+	a. Lost wages. 7
	59	+	b. Transportation, lodging, and meals. 8
	60	+	(4) Lost wages. – All monetary payments from employment or services that are 9
	61	+	taxable as income under the Code and that are not reimbursed through another 10
	62	+	source, such as sick pay or short-term disability benefits. The term does not 11
	63	+	include capital gains, IRA distributions, pensions, annuities, unemployment 12
	64	+	compensation, State workers' compensation benefits, medical retirement 13
	65	+	benefits, or social security benefits. 14
	66	+	(b) Credit. – A taxpayer who makes a live organ donation or who is allowed to claim as 15
	67	+	a dependent a person who makes a live organ donation is allowed a credit against the tax imposed 16
	68	+	by this Part equal to the lesser of the live organ donation expenses or five thousand dollars 17
	69	+	($5,000). For the purposes of this section, "dependent" means a qualifying child or qualifying 18
	70	+	relative as defined in section 152 of the Code. 19
	71	+	(c) Limitation. – The credit allowed under this section may not exceed the amount of tax 20
	72	+	imposed by this Part for the taxable year reduced by the sum of all other credits allowable, except 21
	73	+	tax payment made by or on behalf of the taxpayer. 22
	74	+	(d) Carryforward. – Any unused portion of a credit allowed in this section may be carried 23
	75	+	forward for the succeeding five years." 24
	76	+	SECTION 2.(b) G.S. 105-153.5(a) reads as rewritten: 25
	77	+	"(a) Deduction Amount. – In calculating North Carolina taxable income, a taxpayer may 26
	78	+	deduct from adjusted gross income either the standard deduction amount provided in subdivision 27
	79	+	(1) of this subsection or the itemized deduction amount provided in subdivision (2) of this 28
	80	+	subsection. The deduction amounts are as follows: 29
	81	+	… 30
	82	+	(2) Itemized deduction amount. – An amount equal to the sum of the items listed 31
	83	+	in this subdivision. The amounts allowed under this subdivision are not 32
	84	+	subject to the overall limitation on itemized deductions under section 68 of 33
	85	+	the Code: 34
	86	+	… 35
	87	+	c. Medical and Dental Expense. – The amount allowed as a deduction for 36
	88	+	medical and dental expenses under section 213 of the Code for that 37
	89	+	taxable year. No deduction is allowed for live organ donation expenses 38
	90	+	for which a credit was taken under G.S. 105-153.12. 39
	91	+	…." 40
	92	+	SECTION 2.(c) G.S. 105-160.3(b) reads as rewritten: 41
	93	+	"(b) The tax credits allowed under G.S. 105-153.9 or G.S. 105-153.12 may not be claimed 42
	94	+	by an estate or trust." 43
	95	+	SECTION 2.(d) This section is effective for taxable years beginning on or after 44
	96	+	January 1, 2025. 45
	97	+	46
	98	+	PART III. PAID LEAVE FOR STATE EMPLOYEES 47
	99	+	SECTION 3.(a) Article 2 of Chapter 126 of the General Statutes is amended by 48
	100	+	adding a new section to read: 49
	101	+	"§ 126-8.7. Paid leave for State employees and State-supported personnel for organ 50
	102	+	donation. 51 General Assembly Of North Carolina Session 2025
	103	+	DRH10172-MRf-106 Page 3
	104	+	(a) Full-Time Employees. – The State Human Resources Commission shall adopt rules 1
	105	+	and policies to provide that a permanent, full-time State employee may take, in addition to any 2
	106	+	other leave available to the employee, up to (i) 30 days of paid leave for the purposes of serving 3
	107	+	as a living organ donor and (ii) seven days for serving as a bone marrow donor. The employee 4
	108	+	must have been continuously employed by the State for at least 12 months immediately preceding 5
	109	+	the first request for paid organ or bone marrow donation leave. 6
	110	+	(b) Part-Time Employees. – The State Human Resources Commission shall adopt rules 7
	111	+	and policies to provide that a permanent, part-time State employee may take, in addition to any 8
	112	+	other leave available to the employee, a prorated amount of up to (i) 30 days of paid leave for the 9
	113	+	purposes of serving as a living organ donor and (ii) seven days for serving as a bone marrow 10
	114	+	donor. The employee must have been continuously employed by the State for at least 12 months 11
	115	+	immediately preceding the first request for paid organ or bone marrow donation leave. 12
	116	+	(c) Program Requirements. – The paid leave for organ or bone marrow donation 13
	117	+	authorized by this section: 14
	118	+	(1) Is available without exhaustion of the employee's sick and vacation leave. 15
	119	+	(2) Is in addition to, and not in lieu of, shared leave under G.S. 126-8.3, or other 16
	120	+	leave authorized by federal or State law. 17
	121	+	(3) May not be used for retirement purposes. 18
	122	+	(4) Has no cash value upon termination from employment. 19
	123	+	(d) Applicability. – This section applies to all (i) State employees and (ii) State-supported 20
	124	+	personnel, with the appropriate governing board adopting rules and policies to provide paid leave 21
	125	+	for organ donation to its employees as provided by this section. 22
	126	+	(e) Reporting. – By April 1, 2026, and then annually thereafter, the State Human 23
	127	+	Resources Commission, the State Board of Education, the State Board of Community Colleges, 24
	128	+	and all State agencies, departments, and institutions shall annually report to the Office of State 25
	129	+	Human Resources on the paid organ donation leave program." 26
	130	+	SECTION 3.(b) G.S. 126-5 is amended by adding a new subsection to read: 27
	131	+	"(c22) The provisions of G.S. 126-8.7 shall apply to all State employees, public school 28
	132	+	employees, and community college employees." 29
	133	+	30
	134	+	PART IV. EFFECTIVE DATE 31
	135	+	SECTION 4. Except as otherwise provided, this act is effective when it becomes 32
	136	+	law. 33