In March, an unusual pair of bills were introduced to the New Jersey Assembly. These bills proposed to offer direct tax credits to those individuals donating blood or organs. If the legislation is passed, this would be the first time a state has provided a no-strings-attached tax credit for organ or blood donation. Seemingly a universal good, there is a nagging question as to whether the bill is legal. Under the National Organ Transplant Act, is it illegal to buy or sell organs. The direct tax credit veers dangerously close to violating this provision. States currently offering tax credits for organ or blood donors have typically drafted their legislative provisions as expense reimbursements, not dollar-for-dollar credits. The legality of the New Jersey plan remains unclear because the proposed credit may result in monetary gain for donors.
See Kari Jahnsen, Organ Donation Tax Credits: A Life or Death Proposal?, Tax Foundation, June 7, 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
