Individual income tax: credit; 1-time credit for organ donation; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 280.
The introduction of this bill modifies existing state tax laws, particularly in the context of personal income tax provisions. By allowing a credit for organ donation expenses, it acknowledges the importance of live donors and aims to encourage more individuals to consider such a life-saving act. The bill highlights the state's commitment to supporting its residents engaged in organ donation and could lead to an increase in successful transplant surgeries by making the process more financially viable for donors. It may also set a precedent for other states to consider similar provisions to enhance organ donation rates.
House Bill 4361 establishes a new tax credit provision for individuals who incur unreimbursed expenses related to live organ donations. Starting from tax years beginning January 1, 2025, taxpayers may claim a one-time tax credit for expenses directly associated with their organ donation activities, capped at $10,000. This initiative aims to alleviate some of the financial burdens faced by live organ donors, and it covers various costs such as travel, lodging, lost wages, and childcare incurred during the organ donation process. The overarching goal is to promote and incentivize organ donations, which are critical for saving lives and addressing organ shortages in Michigan.
The sentiment around HB 4361 appears to be primarily positive, characterized by a broad support base among various lawmakers and healthcare advocates. The bill has passed through legislative processes with strong backing, reflected in the significant number of votes in favor during the recent Senate Third Reading, where it passed with 35 yeas to 1 nay. This support highlights a collective recognition of the healthcare needs related to organ transplants and general agreement on the importance of promoting organ donation.
While the sentiment is largely supportive, some contention might arise regarding the limits of the credit, such as the cap set at $10,000 and the verification process for expenses. Critics may argue that the stipulations could hinder potential donors from fully accessing the financial support intended by the bill. Moreover, discussions may arise about the extent to which the state should be financially involved in personal medical decisions. However, these points of contention seem minimal compared to the acceptance of the bill and its aims.