U.S. Representatives Mike Kelly and Chrissy Houlahan have introduced the Harley Jacobsen Clinical Trial Participant Income Exemption Act, a legislative proposal aimed at changing how payments to clinical trial participants are treated for tax purposes. The act seeks to exempt these payments from being considered taxable income, addressing what some see as a financial burden on participants, especially those with lower incomes.
Under existing laws, payments that do not fall under reimbursements are taxable. This can discourage participation in clinical trials due to the added financial implications for individuals already facing economic challenges.
Rep. Kelly emphasized the importance of this change by stating, “By exempting these payments from gross income, we can alleviate this burden and make participation in clinical trials more accessible and accommodating to individuals’ lives.” He highlighted that the legislation is patient-focused and aims to enhance both care and outcomes.
Rep. Houlahan also supported the initiative, noting the essential role of clinical trials in advancing modern medicine. “Modern medicine has shown us how crucial clinical trials are to cutting-edge research and development,” she said. She acknowledged that current financial strains deter diverse participation in these studies. By making such payments tax-exempt, she believes access will improve, leading to better medical advancements through a more inclusive participant pool.
The bill was previously introduced during the 118th Congress but did not pass at that time.
The proposed legislation includes measures to:
– Enhance access to experimental therapies for marginalized groups such as those with disabilities or chronic illnesses.
– Remove reporting requirements for both participants receiving payment and sponsors of the trial.
– Protect recipients who depend on social welfare programs like SNAP and WIC from surpassing income limits due to trial compensation.
Currently, participants must report all received payments as gross income annually if they exceed $600 per year. The bill aims to eliminate this requirement altogether.
Further details on the bill can be accessed through its full text online.
