Virginia House Bill HB762

Virginia 2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Organ donation leave tax credit; establishes a nonrefundable credit for taxable years 2024-2028.

Impact

If enacted, HB 762 would introduce a new provision into the Code of Virginia that specifically recognizes organ donation leave, providing a clear framework for private employers to follow. The tax credit is designed to incentivize employers to support organ donation efforts by addressing the potential economic impact of granting employees time off for donation procedures or recovery. Employers will benefit from reduced tax liabilities, which may encourage them to adopt more generous policies regarding employee leave for organ donations.

Summary

House Bill 762 aims to establish a nonrefundable tax credit for private employers who provide organ donation leave to employees. This legislation is being proposed to encourage and facilitate organ donations by alleviating some of the financial burdens employers might face when an employee takes leave for such purposes. The proposed tax credit applies to taxable years from 2024 to 2028 and allows employers to claim a credit against their tax liability based on the compensation paid to the organ donor employee during their leave, as well as costs incurred for temporary replacement help during that time.

Contention

Notably, there might be discussions regarding the scope of 'private employers' defined in the bill, which explicitly excludes public entities like municipalities and state agencies. This could raise questions around equity and whether public employers should also align with the supportive measures intended for private sector employees. There may be concerns about the potential administrative burden on employers in tracking and claiming the credits, as well as ensuring compliance with the outlined definitions of organ donation leave.