State of Michigan allows tax credit for private employers of living organ donors

• Provide proof the employer gave paid organ donation leave of up to 12 weeks with no less than 100% of wadges given to the employee  

“Medical leave shouldn’t decide if someone can donate an organ,” said Mona Doshi, MBBS, a Clinical Professor of Nephrology at University of Michigan Health Transplant Center who has been a driving force behind improving living organ donor protections in Michigan.

“This bill will help ensure that those who are interested in donating an organ will be able to do so without financial burden in addition to helping more Michiganders receive the lifesaving organ donations they need.”

The one-time tax credit for living organ donors approved in late 2024 allows donors to receive up to $10,000 in tax credits to cover expenses accrued from their donation.

This tax deduction became available on January 1, 2025.

To receive a deduction or credit, living organ donors must meet the following criteria:  

• Submit proof of organ donation  

• Submit proof of any expenses related to the organ donation that were NOT covered by the recipient’s insurance  

In addition to the tax credit, living organ donors can’t be discriminated against or have a change in premiums for life insurance or disability insurance.

This bill will help ensure that those who are interested in donating an organ will be able to do so without financial burden in addition to helping more Michiganders receive the lifesaving organ donations they need.”  

-Mona Doshi, MBBS, a Clinical Professor of Nephrology at University of Michigan Health Transplant Center 

Public employers were also required to include paid time off for living organ donations under the Family Medical Leave Act, or FMLA.

In 2026 in Michigan alone, over 2,200 people are waiting for a kidney transplant and nearly 100 for a liver.

Kidney and liver transplants from any donor, deceased or living, save lives. However, on average, living donor organs last about twice as long as deceased donor organs.

In recent years, the living donor landscape has changed.

More biologically unrelated donor candidates beyond spouses are coming forward to be living kidney and liver donors.

“We are seeing humanity at its best,” said Doshi.

SEE ALSO: Making a difference with living donor kidney organs 

“Living donors are everyday heroes who are willing to undergo painful surgery and permanently donate a body part or tissue to help someone else.”

Out of the 149 living donor transplants performed in Michigan in 2023, 73 came from unrelated living donors.

With a tax credit now available in Michigan for living donors and private employers, Michigan will move to a “B” grade for living donors from the American Kidney Fund.

The American Kidney Fund gives individual states letter grades based on seven key legal protections given by the state for living donors.

These include adequate paid time off for organ donation and recovery, protections against discrimination and changes in life or disability insurance premiums due to donation, and tax credits to reimburse for related expenses accrued by living donors.

Prior to the passing of the one-time tax credit for living donors, Michigan sat at an “F” grade in 2023.

“Thanks to collaboration with the State of Michigan government, Michigan is one of the few states with several living donor protection laws,” said Doshi.

“This is monumental for those in need of an organ and helps properly honor those who are willing to donate and make sacrifices to give the gift of life.”

Learn more about how to be a living organ donor with U-M Health here.

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