BILL NUMBER: S4022

SPONSOR: RIVERA
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a personal
income tax credit for organ donations; and to repeal paragraph 38 of
subsection (c) of section 612 of such law in relation to the personal
income tax modification, reducing federal adjusted income, for organ
donations

 
PURPOSE:

To replace the current organ donation income tax deduction with a
onetime personal income tax credit for up to $10,000 for expenses
incurred by a living organ donor.

 
SUMMARY OF PROVISIONS:

Section one amends section 606 of the tax law by adding a new subsection
(ccc) which creates a one-time tax credit for living organ donors of up
              

to $10,000 for full time residents who have donated a human organ within
the same tax year for qualified expenses which include lodging and trav-
el expenses and lost wages.

Section two repeals paragraph 38 of subsection (c) of section 612 of the
tax law which contains a tax deduction for the same purposes and under
the same circumstances as the proposed tax credit in section one of the
bill.

Section three provides the effective date.

 
JUSTIFICATION:

There are currently over 10,000 candidates waiting for organ donations
in New York State and every year over 3,000 candidates are added to the
waiting list. In 2015, there were hundreds of living organ donors in New
York including 489 kidney donors and 54 liver donors. Others donated
bone marrow and other organs and tissues. These donors give the gift of
life and must be recognized and supported. They should not endure a
financial burden associated with lost wages, travel and lodging
expenses. While New York State has had a tax deduction for these indi-
viduals, given this is a once in a life time event and the benefit given
and costs accumulated are both so big, this bill makes the deduction
into a much more beneficial tax credit for those who choose to undertake
the act of donating organs or tissues. This tax credit is intended to
both incentivize donations and mitigate the costs of being an organ
donor.

Many states around the nation have established tax deductions for living
organ donors similar to New York. A few have gone the extra step and
created the more helpful tax credits as this bill does. New York offers
taxpayers many tax credits for a whole host of things like college
tuition, real property taxes and dependent care costs. New York has many
people waiting on list for years in need of a donated organ. As a state,
we should do all we can to remove barriers to live organ donation and
support those who give the gift of life.

 
LEGISLATIVE HISTORY:
2016: S.7439 - Passed Senate, died in Assembly
2017: S.2497 - Passed Senate, died in Assembly
2018: S.2497 - Referred to Investigations and Government Operations

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law and shall apply to tax years
commencing on and after such date.