The Overview

Michigan employers with a written policy of paid organ donation leave, paid at least 100% of normal wages, can claim a tax credit equal to 100% of wages paid during up to 12 weeks of leave for workers who provide written physician verification that they are organ donors. Michigan's organ donor tax credit bill, SB 301, became law when Gov. Gretchen Whitmer (D) signed it July 21. ​

Living organ donors can face real financial losses: the Associated Press reported that one study found more than a third lost wages in the first year after donation, while STAT reported that travel, lodging, and child care costs can discourage people from donating. The law took effect July 22 and applies to tax years beginning on or after Jan. 1, 2026.

What the Law Does

To claim the credit, an employer must have a written policy offering paid organ-donation leave on top of other paid leave, pay the employee at least 100% of their normal wages, and receive written physician verification that the employee is an organ donor. The credit equals 100% of wages paid during that leave, capped at 12 weeks per employee, and can be claimed against either individual income tax or corporate income tax.

Employers who use the credit must add those wages back into their taxable income; any unused credit carries forward for three years but is not refundable. The Michigan Senate Fiscal Agency estimated the revenue reduction to the state's General Fund as indeterminate but likely negligible.

Legislative Status

Sen. Joe Bellino (R-MI-16) sponsored the bill, and Kevin Hertel, Michael Webber, and John Cherry are listed as cosponsors. The Senate passed it 34-1 on Apr. 21, and the House passed it 98-8 on June 11.

Bellino, himself a living organ donor, said in a statement carried by Michigan Senate Republicans that the law would let organ donors take up to 12 weeks of paid leave funded through the employer tax credit. Gift of Life Michigan celebrated the bill as allowing employers to claim a tax credit covering all wages paid to employees who take time off to become living organ donors.

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