In personal income tax, further providing for classes of income.
If enacted, SB124 will significantly impact state taxation laws by providing a financial incentive for organ donations. This deduction is expected to alleviate some of the economic burdens faced by donors during the transplant process. By recognizing the costs associated with organ donation, the bill encourages more individuals to consider donating, potentially increasing the number of available organs for transplantation in the state.
Senate Bill 124 aims to amend the Tax Reform Code of 1971 by introducing a specific deduction for taxpayers who donate human organs. Under this bill, individuals can deduct up to ten thousand dollars from their taxable income for unreimbursed expenses related to the organ donation process, which may include travel, lodging, lost wages, and medical expenses. The deduction can only be claimed once during a taxpayer's lifetime and must be reported in the tax year in which the organ transplantation occurs.
The sentiment surrounding SB124 appears to be generally positive among legislators and advocacy groups supportive of organ donation. Proponents argue that providing tax deductions for organ donors is a compassionate and necessary step that aligns with public health goals. However, there may also be some contention regarding the fiscal implications of such deductions and whether it is appropriate to incentivize organ donation through the tax code, with critics possibly arguing about budgetary impacts.
Notable points of contention may arise from discussions on the long-term financial impact of the proposed deductions on state revenues. Some critics may question whether this policy effectively addresses the broader issues surrounding organ donation and transplantation, such as public awareness and the need for extensive education on organ donor registration. Additionally, there may be debates about the fairness of allowing only a one-time tax deduction and whether it sufficiently supports potential donors facing significant expenses.