Michigan enacts living donor $10,000 tax credit

LANSING, Mich. (FOX 2) - Michiganders who become organ donors now have an opportunity to claim a $10,000 tax credit for giving the gift of life.

It’s all thanks to a state House bill that was signed into law last year.

Big picture view:

Starting with the 2025 tax year, when you give the gift of life, such as through a liver or kidney donation, you won’t walk away empty-handed.

This tax credit covers un-reimbursed expenses like lost wages, travel and hotel expenses, and childcare costs for qualifying organ donations made on or after Jan. 1, 2025. Advocates of the tax credit worked hard to get the bill passed. Here’s how it works:

"Someone who saves a life by becoming a living organ donor gathers up their receipts for those particular costs," said Living Liver Foundation Co-Founder David Galbenski. "Check your Michigan 1040 — it’s line number 20. You work with your CPA, provide that along with a letter from a transplant center like Henry Ford Health that certifies you are a living donor, and the tax credit is then applied. In the last three years, we’ve moved from a state that was right at an F on living organ donation protections to a B. That shows that when we work together in a bipartisan way, we can get great stuff done for Michiganders."

"I always explain to people, they actually save two lives with every organ they donate," said Dr. Atsushi Yoshida. "The person you’re donating to benefits from it, but that person would have normally taken a deceased donor transplant, which can now go to someone else."

This is viewed as a win for many.

What you can do:

If you’re a qualifying organ donor, remember on Michigan 1040, it’s line number 20 for the tax credit.