By the Michigan Department of Treasury
More than 2,000 Michigan residents are currently waiting for organ donations, most of whom require kidneys. Nationally, 13 people die every day waiting for a kidney donation.
Removing economic barriers that prevent live organ donations is considered key to increasing this lifesaving gift.
Beginning Tax Year 2025, Michigan taxpayers can take a new tax credit for up to $10,000 in unreimbursed expenses associated with donating a live human organ to another human for transplant. The new credit is a one-time, nonrefundable credit available to the taxpayer for donations made by themselves or any of the dependents claimed by the taxpayer.
Expenses include, but are not limited to, any unreimbursed travel or lodging expenses, lost wages, or childcare expenses. Claimable expenses are those incurred in the tax year before the donation, the year of the donation, or the year following the organ donation.
Because it is a one-time credit, a taxpayer may only take the credit for expenses incurred in one of those years. Additionally, because the credit is non-refundable, it may only be taken up to the amount of the taxpayer’s tax liability for the year claimed even if the unreimbursed expenses exceed that amount.
For purposes of the new tax credit, donated human organs include, as defined under the Public Health Code, a kidney, liver, heart, lung, pancreas, intestine, bone marrow, cornea, eye, bone, skin, cartilage, dura mater, ligaments, tendons, fascia, pituitary gland, middle ear structures and any other human organ specified by rules promulgated by the Department of Health and Human Services.
Human organ does not include whole blood, blood plasma, blood products, blood derivatives, other self-replicating body fluids, or human hair.
Taxpayers are required to submit verification of the donation with the annual return on which the credit is claimed. The Michigan Department of Treasury may require reasonable proof of the donation expenses claimed.
