HR 2810119th CongressIn Committee

Family Cord Blood Banking Act

Introduced: Apr 10, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Family Cord Blood Banking Act would amend the Internal Revenue Code to treat amounts paid for private umbilical cord blood or umbilical cord tissue banking services as medical care expenses. Specifically, payments made to accredited cord blood banks that comply with regulations under the Public Health Service Act (Section 361) would be treated as medical care costs for tax purposes. The change would apply to taxable years beginning after December 31, 2024. In effect, families that itemize deductions could deduct private cord blood banking costs, subject to the usual medical-expense deduction rules.

Key Points

1What the bill does: Adds private umbilical cord blood or cord tissue banking services to the list of medical care expenses eligible for deduction when paid to an accredited bank compliant with PHS Act Section 361 regulations.
2Eligible providers: Only private banking services from accredited banks in compliance with Section 361 regulations are eligible.
3Tax treatment: The payments would be deductible as medical expenses, subject to the standard medical-expense deduction rules (i.e., itemizers can deduct these costs to the extent they exceed the existing AGI floor for medical expenses).
4Effective date: Applies to taxable years beginning after December 31, 2024 (i.e., starting with 2025 tax year).
5Policy intent and oversight: Seeks to promote private cord blood banking by providing tax relief while tying eligibility to regulated, accredited banks to ensure safety and proper oversight.

Impact Areas

Primary group/area affected- Families considering or pursuing private cord blood banking, particularly those who itemize deductions on their taxes.- Private cord blood banks (accredited ones) that would be the eligible providers for the deduction.Secondary group/area affected- Taxpayers who itemize medical expenses and may benefit from the deduction.- Tax professionals and preparers who assist in applying medical-expense deduction rules.Additional impacts- Regulatory and compliance landscape: Emphasizes accreditation and adherence to Public Health Service Act Section 361 standards for eligibility.- Fiscal/tax policy considerations: Represents a tax preference (rather than a credit) that could affect federal revenue and taxpayer behavior related to private medical services; impacts are limited to those who incur and itemize such costs.

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