If enacted, HB1557 will amend Chapter 235 of the Hawaii Revised Statutes to include provisions for a tax credit applicable to employers whose employees make verified blood donations during organized drives. This credit is designed to reduce the net income tax liability of the employer, making it financially beneficial for them to facilitate such drives. The legislation is set to apply for taxable years beginning after December 31, 2021, and ending before January 1, 2028, further establishing a sustained timeframe for the implementation of this initiative.
Summary
House Bill 1557 aims to address a critical blood shortage in the State of Hawaii by establishing a tax credit for employers that host blood donation drives. The bill recognizes the significant decline in blood donations due to the COVID-19 pandemic, which led to a health crisis affecting hospitals that rely on blood supplies for emergency treatments. By incentivizing employers to encourage their employees to donate blood, the bill seeks to increase participation in blood donation efforts across the state.
Contention
While the bill appears broadly beneficial in addressing blood shortages, potential points of contention may arise concerning the exact financial implications for the state budget due to the introduction of this tax credit. Critics may argue about the effectiveness of the proposed credit in substantially increasing blood donations and whether it adequately addresses the core issues related to the blood supply chain. Furthermore, the specifics of how the tax credit amount will be determined and adjusted could also lead to discussions among lawmakers regarding fairness and equity in taxation.