[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5127 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 5127

To amend the Internal Revenue Code of 1986 to exclude from gross income 
  certain compensation to clinical trial participants, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 23, 2026

 Mr. Banks (for himself and Ms. Cortez Masto) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
  certain compensation to clinical trial participants, 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 ``Harley Jacobsen Clinical Trial 
Participant Income Exemption Act of 2026''.

SEC. 2. EXCLUSION OF COMPENSATION PROVIDED TO PARTICIPANTS IN CLINICAL 
              TRIALS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139L the following new section:

``SEC. 139M. CLINICAL TRIAL PAYMENTS.

    ``(a) In General.--Gross income shall not include any amount 
received by an individual as a qualified clinical trial payment.
    ``(b) Qualified Clinical Trial Payment Defined.--For purposes of 
this section, the term `qualified clinical trial payment' means any 
amount paid to an individual--
            ``(1) as compensation for participation by the individual 
        or a dependent of the individual in an approved clinical trial, 
        or
            ``(2) to reimburse or pay reasonable and necessary expenses 
        incurred in connection with participation by the individual or 
        a dependent of the individual in an approved clinical trial.
    ``(c) Other Definitions.--For purposes of this section--
            ``(1) Approved clinical trial.--The term `approved clinical 
        trial' has the meaning given such term in section 2709(d)(1) of 
        the Public Health Service Act (42 U.S.C. 300gg-8(d)(1)), 
        determined by substituting `disease or condition' for `life-
        threatening disease or condition'.
            ``(2) Dependent.--The term `dependent' has the meaning 
        given such term in section 152.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 139L the following new item:

``Sec. 139M. Clinical trial payments.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid after December 31, 2025.

SEC. 3. CLINICAL TRIAL COMPENSATION NOT TAKEN INTO ACCOUNT FOR PURPOSES 
              OF DETERMINING ELIGIBILITY FOR FEDERAL PROGRAMS OR 
              ASSISTANCE.

    (a) In General.--Notwithstanding any other provision of law, any 
amount received by an individual as a qualified clinical trial payment 
shall not be taken into account as income or resources for purposes of 
determining the eligibility of such individual (or any other 
individual) for benefits or assistance (or the amount or extent of 
benefits or assistance) under any Federal program or under any State or 
local program financed in whole or in part with Federal funds.
    (b) Qualified Clinical Trial Payment.--For purposes of subsection 
(a), the term ``qualified clinical trial payment'' has the meaning 
given such term in section 139M(b) of the Internal Revenue Code of 1986 
(as added by section 2 of this Act).
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