(a) In general

Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section:

139J. 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 applying 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 139I the following new item:

(c) Effective date

The amendment made by this section shall apply to amounts paid after December 31, 2025.

(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 139J(a) of the Internal Revenue Code of 1986 (as added by section 1 of this Act).