Kelly’s bipartisan bill would make clinical trial payments tax-exempt for participants

Come tax time, Americans who participated in clinical trials would not have to count their payments as part of their gross income under a bipartisan bill proposed on Jan. 25 by U.S. Rep. Mike Kelly (R-PA).

“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,” Rep. Kelly said on Monday. “This legislation puts the patients first and aims to improve both patient care and patient outcomes.”

The congressman sponsored the Harley Jacobsen Clinical Trial Participant Income Exemption Act, H.R. 7090, with lead original cosponsor U.S. Rep. Chrissy Houlahan (D-PA) to help reduce a financial burden for clinical trial participants, particularly those in lower-income brackets, according to a bill summary provided by Rep. Kelly’s staff.

By allowing such payments to be tax-exempt, “this would not only increase access to these trials and diversify those participating, but would also allow for better advancements in our medical research as a result of including a more comprehensive patient population,” said Rep. Houlahan.

Specifically, H.R. 7090 would eliminate the reporting requirements for both the patient/caregiver (the payment recipient) and the 1099 form reporting requirement of the payor, the summary says, noting that this also would protect participants who rely on social welfare programs and others from exceeding income requirements.

The bill has been referred for consideration to the U.S. House Ways and Means Committee.