The bill amends Chapter 235 of the Hawaii Revised Statutes to introduce a new tax credit for individuals who make four or more blood donations in a year. The credit would be applicable against the taxpayer's net income tax liability and offers a refund for any amounts where the credit exceeds taxable owed amounts. This measure is designed to encourage more frequent blood donations and directly correlates tax benefits with civic contribution, potentially improving community health outcomes by ensuring an adequate supply of blood for medical emergencies.
Summary
SB2754 is a legislative proposal in Hawaii aimed at addressing a critical shortage of blood supplies within the state. This bill proposes the establishment of a blood donation income tax credit as an incentive for residents to contribute to blood banks. The initiative comes in response to data indicating a significant decrease in blood donations due to the COVID-19 pandemic, which has created a serious health crisis impacting local hospitals. The Blood Bank of Hawaii, the sole provider of blood to many civilian hospitals in the state, reported that they are operating at a fraction of their needed supply, highlighting an urgent need for increased donations.
Contention
Support for SB2754 centers around the urgent need for an adequate blood supply, which proponents argue is critical for public health and safety. However, there may be concerns regarding compliance and the administration of the tax credit, particularly the need for proof of donations and maintaining accurate records. Opposition might arise from skepticism about the effectiveness of financial incentives to spur donation rates compared to awareness campaigns or other measures. Furthermore, implementing such tax credits could place administrative burdens on both the state departments responsible for tax collection and the blood banks that need to validate donations.
A resolution to direct the Clerk of the House of Representatives to only present to the Governor enrolled House bills finally passed by both houses of the One Hundred Third Legislature.