WeVote
Log In

Bill

AA

Bill

HB 4361

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.

2023-2024 Regular Session Introduced by Abraham Aiyash and 21 co-sponsors

Michigan offers a one-time, nonrefundable income tax credit up to $10,000 for unreimbursed live organ donation expenses (pre, during, or after donation), with verification.

assigned PA 156'24
#health:anatomicalgifts #individualincometax:credit
0
WeVote Research Nonpartisan
Bill Summary · HB 4361

HB 4361 — One‑time Michigan income tax credit for live organ donation expenses (Public Act 156 of 2024)

Main purpose

To encourage live organ donation by offsetting donors’ out‑of‑pocket costs. The law creates a one‑time state individual income tax credit for unreimbursed expenses related to a live organ donation.

Key provisions

  • Creates a new section (MCL 206.280) to the Income Tax Act authorizing a 1‑time credit for live organ donation expenses for tax years beginning on or after January 1, 2025.
  • Credit amount: the lesser of the taxpayer’s unreimbursed live organ donation expenses or $10,000.
  • Nonrefundable: the credit may reduce tax liability but any excess amount is not refunded.
  • Eligible expense period: taxpayers may claim expenses incurred in the tax year before the donation, the tax year of the donation, or the tax year after the donation.
  • Verification and documentation: taxpayers must submit verification of the live organ donation with the return in the form and manner the Department of Treasury prescribes; the Department may require reasonable proof of claimed expenses.
  • Definitions:
    • “Live organ donation” — a living individual donates one or more human organs to another human to be transplanted via a medical procedure.
    • “Live organ donation expenses” — unreimbursed expenses directly related to the donation (includes travel, lodging, lost wages, child care as defined in IRC §21, and other expenses to be defined by Treasury rule). Expenses may be for the taxpayer or for an individual the taxpayer may claim as a dependent.
    • “Human organ” is defined by reference to the Public Health Code (MCL 333.10204) and excludes whole blood, plasma, blood products, hair, etc.
  • Rulemaking authority: the Department of Treasury may define additional qualifying expenses by rule.

Who is affected

  • Michigan individual income taxpayers who are living organ donors (or who incur qualifying unreimbursed donation expenses on behalf of a dependent they claim).
  • The Department of Treasury (administration, verification, rulemaking).
  • State General Fund revenues (credits reduce General Fund receipts; do not affect School Aid Fund).

Fiscal impact and context

  • Fiscal estimates vary by source and assumptions:
    • If every pre‑pandemic average Michigan live donor (~210/year) claimed the full $10,000, revenue loss would be roughly $2.0 million.
    • More realistic estimates (accounting for nonrefundability and lower tax liabilities) place the annual General Fund revenue reduction roughly between $350,000 and $750,000.
  • Supporters argue the credit reduces financial barriers (lost wages, travel, child care) and could increase live donations; several kidney advocacy and medical organizations supported the bill.

Legislative/timeline

  • Enacted as Public Act 156 of 2024 (filed with Secretary of State and approved by the Governor November 13, 2024).
  • Credit applies to tax years beginning on or after January 1, 2025.
  • Implementation requires Treasury to specify verification procedures and may adopt rules defining additional qualifying expenses.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.