An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for classes of income.
SB124 would amend Pennsylvania’s Tax Reform Code to create a new personal income tax deduction for certain unreimbursed expenses connected to living organ donation. A taxpayer may deduct up to $10,000 for expenses such as travel, lodging, lost wages, and medical costs incurred by the taxpayer or the taxpayer’s dependent when donating a human organ for transplantation. The deduction is limited to the amount of actual unreimbursed expenses, cannot reduce taxable income below zero, and may be claimed only once in a taxpayer’s lifetime.
The bill defines “human organ” to include all or part of a liver, pancreas, kidney, intestine, lung, or bone marrow. It applies to tax years beginning after December 31, 2025, and takes effect immediately. In practical terms, the measure would reduce state taxable income for eligible donors and their families, lowering Pennsylvania personal income tax liability for a narrow class of taxpayers who face out-of-pocket costs associated with organ donation.
SB124 would add a new subsection to section 303 of the Tax Reform Code of 1971, expanding the list of deductible items for Pennsylvania personal income tax purposes. The change would affect taxpayers who donate organs and incur qualifying unreimbursed expenses, while also requiring the Department of Revenue to administer and interpret the new deduction. Because the deduction is capped, limited to one lifetime claim, and restricted to actual expenses, its fiscal impact is likely targeted rather than broad-based.
The available voting history suggests strong committee support for the bill as amended: the Senate Finance Committee adopted the amendment and reported the bill as amended on 11-0 votes. No committee transcript was provided, so there is no recorded debate to indicate opposition or concerns in discussion. Overall, the bill appears to have been received favorably as a targeted tax relief measure tied to organ donation.
No specific contention is documented in the provided materials. Potential points that could arise from the text itself include the $10,000 cap, the one-time lifetime limit, the restriction to unreimbursed expenses, and the question of whether the deduction should apply in the year of transplantation or the year expenses are incurred. The only visible legislative adjustment in the record is the committee amendment, which was adopted unanimously, suggesting any disputes were resolved before the reported version.