Income tax: authorize a credit for certain blood donations.
Impact
The introduction of this bill is expected to encourage employers throughout the state to host blood drives and promote community health efforts by incentivizing employee participation in blood donations. Supporters believe that it could lead to a significant increase in blood donations, which are critical for maintaining adequate supplies in hospitals and healthcare facilities. By providing financial incentives, the bill aims to foster a culture of voluntary blood donation among employers and their workforce.
Summary
House Bill 427 aims to authorize an income tax credit for employers who facilitate blood donations by their employees during organized blood drives. This initiative defines important terms related to blood donations and sets guidelines on how the tax credit will be applied. The bill designates a $20 tax credit for each verified donation made as part of a blood drive, with the credit applicable for donations made from 2023 through 2028. However, the total tax credit claims by an employer in a calendar year cannot exceed $500,000, thereby placing a cap on the benefits received through this initiative.
Contention
Notably, the bill's effectiveness may depend on the engagement of employers and their willingness to organize blood drives. There could also be concerns regarding the financial implications for the state in terms of lost tax revenue due to the credits issued. Furthermore, discussions may arise about the adequacy of the cap on credits, especially given the potential variability in the number of verified donations. Should the bill not lead to a substantial increase in donations, some legislators might question whether the incentives are justified in terms of cost versus benefit.