Harley Jacobsen Clinical Trial Participant Income Exemption Act of 2026
The source supplies the latest action, but no lifecycle stage.
Latest action (23 Jul 2026): Read twice and referred to the Committee on Finance.
What this bill does
S. 5127, the Harley Jacobsen Clinical Trial Participant Income Exemption Act of 2026, would amend the Internal Revenue Code to exclude from federal taxable income any payments individuals receive for participating in an "approved clinical trial" for a disease or condition, whether that compensation goes to the individual or a dependent. This includes both payments for participation itself and reimbursement for reasonable, necessary expenses connected to that participation. The exclusion would apply to amounts paid after December 31, 2025.
The bill also provides that such clinical trial payments cannot be counted as income or resources when determining eligibility for, or the amount of, benefits under federal programs or state/local programs that receive federal funding. This means participation payments would not reduce a person's eligibility for assistance such as need-based federal benefit programs.
The bill primarily affects individuals who take part in clinical trials, as well as their dependents, by allowing them to keep trial-related payments tax-free and without jeopardizing other federal or federally funded benefits.
The bill was introduced in the Senate on July 23, 2026, by Sen. Jim Banks (R-IN), along with a cosponsor, and referred to the Senate Committee on Finance. It has not yet received committee action, floor votes, or become law.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Timeline
23 Jul 2026
Read twice and referred to the Committee on Finance.
Common questions
- What does S. 5127 do?
- S. 5127, the Harley Jacobsen Clinical Trial Participant Income Exemption Act of 2026, would amend the Internal Revenue Code to exclude from federal taxable income any payments individuals receive for participating in an "approved clinical trial" for a disease or condition, whether that compensation goes to the individual or a dependent. This includes both payments for participation itself and reimbursement for reasonable, necessary expenses connected to that participation. The exclusion would apply to amounts paid after December 31, 2025. The bill also provides that such clinical trial payments cannot be counted as income or resources when determining eligibility for, or the amount of, benefits under federal programs or state/local programs that receive federal funding. This means participation payments would not reduce a person's eligibility for assistance such as need-based federal benefit programs. The bill primarily affects individuals who take part in clinical trials, as well as their dependents, by allowing them to keep trial-related payments tax-free and without jeopardizing other federal or federally funded benefits. The bill was introduced in the Senate on July 23, 2026, by Sen. Jim Banks (R-IN), along with a cosponsor, and referred to the Senate Committee on Finance. It has not yet received committee action, floor votes, or become law.
- Has S. 5127 become law?
- The source does not supply a confirmed lifecycle stage for S. 5127. Check the latest action and official source below.
- Who sponsored S. 5127?
- S. 5127 was sponsored by Sen. Banks, Jim [R-IN] (R-IN), with 2 cosponsors.
- What's the latest action on S. 5127?
- Read twice and referred to the Committee on Finance. (23 Jul 2026).
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