206.280 One-time credit for live organ donation expenses.

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Sec. 280.

(1)For tax years that begin on and after January 1, 2025, subject to the limitations under this section, a taxpayer may claim a 1-time credit against the tax imposed by this part equal to the unreimbursed live organ donation expenses incurred during the tax year or $10,000.00, whichever is less. A taxpayer may claim the 1-time credit under this section for live organ donation expenses that were incurred in the tax year prior to the live organ donation, the tax year of the live organ donation, or the tax year after the live organ donation. In order to claim the credit under this section, the taxpayer must submit verification, in a form and manner as determined by the department, of the live organ donation with the annual return filed under this part on which a credit under this section is claimed. The department may require reasonable proof from the taxpayer in support of the live organ donation expenses claimed under this section.

(2)If the amount of the credit exceeds the tax liability of the taxpayer for the tax year, that portion of the credit that exceeds the tax liability must not be refunded.

(3)As used in this section:

(a)"Child care expenses" means employment-related expenses as defined under section 21 of the internal revenue code.

(b)"Human organ" means that term as defined in section 10204 of the public health code, 1978 PA 368, MCL 333.10204.

(c)"Live organ donation" means that an individual who is living donates 1 or more of the individual's human organs to another human to be transplanted using a medical procedure to the body of the other human.

(d)"Live organ donation expenses" means the total amount of expenses incurred by a taxpayer that are not reimbursed to that taxpayer by any person, are directly related to a live organ donation by the taxpayer or another individual that the taxpayer is allowed to claim as a dependent under section 30(2), and includes, but is not limited to, travel expenses, lodging expenses, lost wages, child care expenses, and other expenses as may be defined by rule by the department.

History: Add. 2024, Act 156 , Eff. Apr. 2, 2025