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

This bill would make certain payments to people who participate in clinical trials tax-free. Specifically, it would add a new provision (Section 139J) to exclude from gross income any “qualified clinical trial payments” received by an individual, including payments for participation or reimbursements of related expenses, as long as the trial is an approved clinical trial. The definition of an approved clinical trial relies on a federal health statute and focuses on trials related to life-threatening diseases or conditions. The tax exclusion would apply to payments made after December 31, 2025. In addition, the bill would require that these qualified payments not be counted when determining eligibility for federal (and federally funded state/local) benefits or assistance. Overall, the goal is to reduce the tax and financial impact on trial participants and to make it easier for people to participate in clinical research.