Marsha Chartrand

Give an organ, get a $10,000 Michigan tax credit

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Michigan residents can get a one-time $10,000 tax credit to help defray expenses from live organ donations. (Shutterstock)

by Janelle D. James (Bridge Michigan)

Live organ donors in Michigan can get a tax credit of as much as $10,000 starting next year to reimburse them for expenses related to the procedure.

The credit is for costs such as child care, transportation and lodging, as well as lost wages.

Gov. Gretchen Whitmer signed House Bill 4361 into law Wednesday, making live organ donors eligible for the one-time credit.

Donors can claim the credit in the tax year of the surgery or for the tax year before or after the operation.

“The biggest reason that we did this was these donors are literally giving folks life and if we can support them in some small way … and make the logistics of their life a little easier … we want to try and do that,” said state Rep. Felicia Brabec, D-Pittsfield Township, who sponsored the bill.

Eligible taxpayers can begin claiming the credit for the 2025 tax year and may be required to provide documentation determined by the state’s Department of Treasury.

“If there is someone who does their organ donation at the end of the year, they might have lost wages, child care, things like that, in the subsequent year,” Brabec said.

In most cases, the donation surgery is covered by health insurance but costs for annual physicals, travel, lodging, lost wages and other non-medical expenses are not covered, according to the United Network for Organ Sharing.

“With the current shortage of kidneys available for those with kidney failure who need them, it is critical that we support people who want to step up and give the gift of life,” said LaVarne A. Burton, president and CEO of the American Kidney Fund, in a press statement. “Unfortunately, too many Americans are unable to donate an organ due to the out-of-pocket costs associated with donating.”

Some organizations offer financial assistance to organ donors for expenses not covered like the National Living Donor Assistance Center which offers up to $6,000 or Donor Shield, which offers up to $12,000 for lost wages and $6,000 for travel and lodging.

This article is being republished through a syndication agreement with Bridge Michigan. Bridge Michigan is Michigan’s largest nonprofit news service and one of the nation’s leading and largest nonprofit civic news providers. Their coverage is nonpartisan, fact-based, and data-driven. Find them online at https://www.bridgemi.com/.

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