Creates an income tax deduction for donation of human organs for transplantation.

A BILL FOR AN ACT

SECTION 1. Congress enacted the Organ Donation and Recovery Improvement Act which signed into law on April 5, 2004. The legislation established a federal grant program to provide assistance to living donors with travel and subsistence expenses and incidental non-medical expenses incurred by individuals toward making living organ donations. Some states have adopted a similar approach by creating a state income tax deduction in lieu of a grant program. Other states that are considering similar legislation include California, Connecticut, Florida, Illinois, Indiana, Louisiana, Maryland, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Oregon, South Carolina, Texas, Vermont, and Washington.

The purpose of this Act is to establish an income tax deduction for organ donation.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-   Deduction for organ donation. (a) There shall be a deduction available from the state adjusted gross income for a taxpayer who, while living, donates one or more of the taxpayer's human organs to another person as part of an organ transplantation. The amount of the deduction shall be not more than $10,000, to be taken in the taxable year in which the donation is made, for the travel expenses, lodging expenses, and lost wages. The taxpayer shall be entitled to one deduction under this section in a lifetime.

(b) For purposes of this section, "human organ" means all or part of a liver, pancreas, kidney, intestine, lung, or bone marrow.

(c) The deduction shall be claimed upon forms provided by the department of taxation."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2005.