Michigan House Bill HB4533

Michigan 2023-2024 Regular Session

• Introduced: 5/9/23
• Refer: 5/9/23

Caption

Corporate income tax: credits; credit for hosting a certified blood drive; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 678.

Impact

Effective from tax years beginning January 1, 2023, HB4533 outlines clear guidelines for taxpayers claiming this credit, requiring the submission of a certification from the hosting nonprofit that specifies the details of the blood drive, including the date, location, and number of donors. The bill stipulates that if the tax credit exceeds the taxpayer's liability for the tax year, a refund may be issued, but limited to 10% of the total tax liability. The remaining credit can be carried forward to offset future tax liabilities for up to five years.

Summary

House Bill 4533 proposes a significant amendment to the Income Tax Act of 1967 in Michigan, specifically by adding a provision that allows taxpayers who host certified blood drives to claim a tax credit. This credit amounts to $25 for each donor who successfully donates blood during the drive conducted in partnership with a nonprofit blood bank organization. The bill is intended to incentivize employers to engage their employees and the community in blood donation efforts, thereby potentially increasing the supply of blood available for transfusions and other medical needs.

Contention

One notable discussion around the bill is its potential fiscal implications. Supporters argue that encouraging blood donation through tax incentives can address the ongoing need for blood products and engage companies in a community service that benefits public health. However, critics may express concerns regarding the actual impact on state revenue and whether such tax incentives are the best use of taxpayer resources. Additionally, there might be debates on how effectively this program would be monitored to ensure that only legitimate blood drives result in tax credits.