Bill Text: MI SB0887 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Corporate income tax: credits; employer credit for paid organ donation leave; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-05-30 - Referred To Committee On Finance, Insurance, And Consumer Protection [SB0887 Detail]
Download: Michigan-2023-SB0887-Introduced.html
SENATE BILL NO. 887
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.847) by adding sections 279 and 679.
the people of the state of michigan enact:
Sec. 279. (1) Subject to the limitations under this section, for tax years beginning on and after January 1, 2024, a qualified taxpayer that provides paid organ donation leave to an eligible employee may claim a credit against the tax imposed under this part in an amount equal to 100% of the wages paid to an eligible employee during any period during which the eligible employee is on organ donation leave. The maximum amount of organ donation leave with respect to any eligible employee for which a credit may be claimed under this section must not exceed 12 weeks. The credit allowed under this section must be claimed for the tax year in which the eligible employee completed use of the paid organ donation leave, and for purposes of calculating the amount of the credit, the qualified taxpayer may include wages paid during the immediately preceding tax year.
(2) For a qualified taxpayer who is a member of a flow-through entity that qualifies for the credit under this section, that taxpayer may claim a credit against the member's tax liability under this part based on the member's distributive share of business income reported from that flow-through entity or an alternative method approved by the department.
(3) If the credit allowed under this section for the tax year and any unused carryforward of the credit allowed by this section exceed the qualified taxpayer's tax liability for the tax year, that portion that exceeds the tax liability for the tax year must not be refunded but may be carried forward to offset tax liability in subsequent tax years for 3 years or until used up, whichever occurs first.
(4) As used in this section:
(a) "Eligible employee" means an employee who has provided the employer with written physician verification that the employee is an organ donor.
(c) "Organ donor" means an individual who donates, in whole or part, 1 or more of the individual's human organ to another individual to be transplanted using a medical procedure to the body of the other individual.
(d) "Qualified taxpayer" means a taxpayer that is an employer that has a written policy offering eligible employees paid organ donation leave that is in addition to any other paid leave benefits policy provided to employees and the rate of payment under that policy for paid organ donation leave is not less than 100% of the wages normally paid to that same employee for services performed for the employer.
(e) "Wages" means that term as defined in section 3306(b) of the internal revenue code.
Sec. 679. (1) Subject to the limitations under this section, for tax years beginning on and after January 1, 2024, a qualified taxpayer that provides paid organ donation leave to an eligible employee may claim a credit against the tax imposed under this part in an amount equal to 100% of the wages paid to an eligible employee during any period during which the eligible employee is on organ donation leave. The maximum amount of organ donation leave with respect to any eligible employee for which a credit may be claimed under this section must not exceed 12 weeks. The credit allowed under this section must be claimed for the tax year in which the eligible employee completed use of the paid organ donation leave, and for purposes of calculating the amount of the credit, the qualified taxpayer may include wages paid during the immediately preceding tax year.
(2) If the credit allowed under this section for the tax year and any unused carryforward of the credit allowed by this section exceed the qualified taxpayer's tax liability for the tax year, that portion that exceeds the tax liability for the tax year must not be refunded but may be carried forward to offset tax liability in subsequent tax years for 3 years or until used up, whichever occurs first.
(3) As used in this section:
(a) "Eligible employee" means an employee who has provided the employer with written physician verification that the employee is an organ donor.
(b) "Organ donation leave" means that period of absence from employment received by an eligible employee related to the organ donation after all other leave benefits provided to that employee have been exhausted. Organ donation leave may be used by an eligible employee before, during, and after the organ donation.
(c) "Organ donor" means an individual who donates, in whole or part, 1 or more of the individual's human organ to another individual to be transplanted using a medical procedure to the body of the other individual.
(d) "Qualified taxpayer" means a taxpayer that is an employer that has a written policy offering eligible employees paid organ donation leave that is in addition to any other paid leave benefits policy provided to employees and the rate of payment under that policy for paid organ donation leave is not less than 100% of the wages normally paid to that same employee for services performed for the employer.
(e) "Wages" means that term as defined in section 3306(b) of the internal revenue code.
