--- title: Kidney Donation Tax Credit Act --- # A Bill To establish a tax credit for qualified kidney donors in order to reduce the costs associated with end-stage renal disease (ESRD) and Medicare’s dialysis expenditures, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, ## SECTION 1. SHORT TITLE This Act may be cited as the Kidney Donation Tax Credit Act of 2025. ## SECTION 2. FINDINGS AND PURPOSE a. Findings.— The Congress finds that: 1. End-stage renal disease (ESRD) imposes significant economic and social costs on individuals and the federal health care system, particularly through reliance on Medicare-funded dialysis treatments. 2. Kidney transplantation, including donations from living donors, offers superior long-term outcomes and cost savings compared to chronic dialysis. 3. Incentivizing kidney donation can help increase the number of transplants performed, thereby reducing the overall burden of ESRD. 4. Tax credits have been effective mechanisms in encouraging health-promoting behaviors and investments. b. Purpose.— The purpose of this Act is to provide a refundable tax credit of up to $20,000—adjusted annually for inflation—to qualified kidney donors as a means of offsetting costs associated with donation and recovery, and to encourage kidney donation as an alternative to long-term reliance on dialysis, thus contributing to the reduction of ESRD-related expenditures. ## SECTION 3. DEFINITIONS For the purposes of this Act: 1. “Qualified Kidney Donor” means a US resident who, after informed consent and comprehensive evaluation, donates a kidney to another person, through living donation, provided that such donation results in a transplant that is medically successful. 2. “Tax Credit” means the credit provided under Section 4 of this Act, available to qualified kidney donors against their federal income tax liability. 3. “Inflation Adjustment” means the annual adjustment in the value of the credit based on changes in the Consumer Price Index for All Urban Consumers (CPI-U) as published by the Bureau of Labor Statistics. 4. “Medically Successful Donation” means a kidney donation that, upon transplantation, results in demonstrable clinical benefit to the recipient without imposing undue harm or long-term adverse health outcomes on the donor. For the purposes of this Act, “medically successful” shall be determined by established clinical criteria set forth by the Secretary of Health and Human Services (HHS) in consultation with relevant clinical experts. 5. “Informed Consent Process” means the comprehensive procedure by which a potential kidney donor is provided with, and acknowledges understanding of, all pertinent medical, psychological, and financial risks and benefits associated with kidney donation, in accordance with standards established by the Secretary of HHS. ## SECTION 4. TAX CREDIT FOR KIDNEY DONATION a. Credit Allowed.— For any taxable year beginning after the enactment of this Act, an individual who qualifies as a qualified kidney donor under Section 3 shall be allowed a refundable federal income tax credit equal to $20,000, adjusted for inflation in accordance with subsection (b). b. Inflation Adjustment.— 1. The initial credit amount of $20,000 shall be adjusted annually on January 1st of each year by multiplying $20,000 by the ratio CPI-U for the current year divided by CPI-U for the base year where the base year is defined as the calendar year in which this act is enacted. 2. The Secretary of the Treasury shall prescribe regulations to implement this inflation adjustment and ensure that the adjusted credit amount accurately reflects changes in the cost of living. c. Limitations.— 1. In the event of any carryforward or carryback provisions (to be defined by the Secretary in regulations), such rules shall be applied in a manner that ensures the credit is available in a tax year in which the donation is made and verified. 2. Nothing in this Act shall be construed to permit the purchase, sale, or coercive inducement of kidney donations. Moreover, the tax credit shall only be available for donations that have been performed at certified transplant centers adhering to established clinical and ethical standards, including a documented and independently verified Informed Consent Process. The Secretary of HHS shall ensure that the application of this credit does not, directly or indirectly, result in undue financial pressure on any individual to donate. d. Coordination with Other Federal Programs.— The credit provided under this Act shall be available regardless of the donor’s participation in other federally funded health programs. However, the Secretary of the Treasury, in consultation with HHS, shall ensure that the availability of this credit does not adversely affect any donor’s eligibility for other federal benefits. ## SECTION 5. ADMINISTRATION AND REGULATIONS a. Authority to Issue Regulations.— The Secretary of the Treasury, in consultation with the Secretary of HHS and with the input of relevant stakeholders, shall promulgate such regulations as may be necessary to implement the provisions of this Act, including but not limited to: 1. Procedures for verifying that a kidney donation qualifies for the credit. 2. Methods for the annual inflation adjustment of the credit amount. 3. Guidelines for taxpayers and tax preparers regarding the application of the credit. b. Guidance and Outreach.— 1. The Secretary of the Treasury, in coordination with HHS, shall develop and disseminate guidance to state tax authorities, health care providers, and transplant centers regarding the administration and use of this tax credit. 2. Preliminary regulations shall be issued within 180 days of enactment. ## SECTION 6. REPORTING AND EVALUATION a. Biennial Report.— Not later than two years after the enactment of this Act and every two years thereafter, the Secretary of HHS in collaboration with the Secretary of the Treasury shall submit a report to Congress evaluating: 1. The number of qualified kidney donations facilitated by the tax credit. 2. The impact of the tax credit on Medicare expenditures related to dialysis and ESRD care. 3. Any unintended consequences or areas for program improvement. ## SECTION 7. EFFECTIVE DATE This Act shall take effect on the date of enactment and shall apply to any kidney donation occurring after such date.