Michigan Senate Bill SB0887

Michigan 2023-2024 Regular Session

• Introduced: 5/30/24
• Refer: 5/30/24

Caption

Corporate income tax: credits; employer credit for paid organ donation leave; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679.

Impact

The introduction of this bill could significantly impact state laws by redefining employer obligations concerning paid leave policies, particularly in the context of organ donation. It creates a framework within which employers must develop their leave policies to qualify for tax incentives. This could increase the number of businesses willing to provide paid leave for organ donations, thereby promoting a culture of altruism and medical assistance in the state. Moreover, it may facilitate the recruitment and retention of employees who value support for organ donation.

Summary

Senate Bill 0887 proposes amendments to the 1967 Income Tax Act of Michigan, specifically targeting the introduction of tax credits for employers offering paid organ donation leave to eligible employees. The bill aims to encourage businesses to support their employees in the organ donation process by providing financial incentives that could ease the burden of lost wages during recovery. Starting from tax years beginning January 1, 2024, qualified taxpayers—those who meet specific criteria regarding the provision of paid leave—can claim a credit equal to 100% of the wages paid to eligible employees during their organ donation leave, limited to a maximum of 12 weeks per employee.

Contention

While generally seen as a positive development for both employees and potential organ donors, the bill may encounter opposition regarding its fiscal implications for state tax revenue, as increased credits could lead to substantial deductions for the state. Additionally, there may be debates surrounding the administrative burden placed on employers to verify eligibility and manage leave policies to accommodate the requirements stipulated in the bill. Advocates for the bill emphasize the moral and social benefits of supporting organ donation, while critics may raise concerns over the balance between promoting organ donation and potential financial strain on public funds.