House Bill 4361, signed into law by Gov. Gretchen Whitmer in November 2024, introduced a one-time tax credit of up to $10,000 for live organ donors to help relieve some of the financial burden associated with the procedure. According to Bridge Michigan, common costs incurred by live organ donors include travel, lodging, childcare, transportation and lost wages; none of which are typically covered by insurance. “With the current shortage of kidneys available for those with kidney failure who need them, it is critical that we support people who want to step up and give the gift of life,” American Kidney Fund President and CEO LaVarne A. Burton explained. “Unfortunately, too many Americans are unable to donate an organ due to the out-pocket costs associated with donating₁.”

Since the bill’s passage, state organ donations are up by 22% in 2025 compared to the previous year, according to Dave Galbenski, co-founder of Living Liver Foundation. Galbenski, a liver donation recipient himself, worked with the bill’s sponsor, Rep. Felicia Brabec, throughout the legislative process in 2024.

CPAs can help their clients who donated an organ on or after Jan. 1, 2025, claim the Living Donor Tax credit to cover expenses related to the donation, including lost wages and medical bills, on their 2025 Michigan Individual Income Tax Form 1040 (MI-1040) this filing season. According to the official tax form instructions published by the Michigan Department of Treasury, the credit option and its instructions will be located on line 20 of the MI-1040.