To amend the Internal Revenue Code of 1986 to exclude from gross income certain compensation to clinical trial participants.
Impact
If enacted, HB7418 would directly impact the tax treatment of clinical trial compensation, effectively allowing participants to receive payments without the burden of taxation. This change is expected to encourage more individuals to engage in clinical studies, which are essential for testing new drugs and therapies. By ensuring that financial support does not result in tax liabilities, the bill underscores the importance of supporting patients and their contributions to advancing medical knowledge. Additionally, it may have broader implications for healthcare policies and the funding landscape for clinical trials, fostering a more favorable environment for innovative research.
Summary
House Bill 7418 aims to amend the Internal Revenue Code of 1986 by excluding certain compensation received by individuals participating in approved clinical trials from being counted as gross income. This legislative effort seeks to provide financial relief for participants, as the costs associated with clinical trial participation can be burdensome. By incentivizing participation through tax exemptions, the bill has the potential to facilitate advancements in medical research and development while simultaneously addressing concerns about the affordability of healthcare interventions.
Contention
While HB7418 has garnered support for its potential to enhance participation in clinical trials, it may face some contention regarding the implications for federal revenue. Opponents might argue that excluding these payments from gross income could lead to a decrease in tax revenue, which could affect funding for other public health initiatives. Furthermore, there may be concerns about the regulatory framework overseeing clinical trials, as increased participation might necessitate enhanced oversight mechanisms to ensure participant safety and data integrity.
Tip Tax Termination Act This bill excludes from gross income for federal tax purposes up to $20,000 of eligible tips received during the tax year. The bill also requires the Internal Revenue Service to modify the tables and procedures used to withhold federal income tax from wages to take into account eligible tips excluded from gross income. The bill defines eligible tips as amounts received while performing services in a position that generally relies on tips as part of wages, including cosmetology, hospitality, and food service.Further, under the bill, the amount of eligible tips excluded from gross income must not be included in determining federal tax deductions or credits, except for purposes of calculating the child tax credit and earned income tax credit.Finally, the exclusion from gross income only applies to eligible tips received before 2030.
A bill to amend the Internal Revenue Code of 1986 to exclude from gross income capital gains from the sale of certain farmland property which are reinvested in individual retirement plans.