In tax credit and tax benefit administration, further providing for definitions; and providing for stillbirth tax credit.
Summary
HB867 amends Pennsylvania’s Tax Reform Code to add a new refundable state income tax credit for taxpayers who experience a stillbirth. The bill defines stillbirth as the expulsion or extraction of a product of conception after 16 weeks’ gestation with no evidence of life, and it ties eligibility to the issuance of a certificate of fetal death or a certificate of birth resulting in stillbirth by the Department of Health. Eligible taxpayers may claim a $2,000 credit for each stillbirth, but only in the taxable year in which the stillbirth occurred and only if the child would have qualified as a dependent under federal tax law.
The bill also requires taxpayers to apply for the credit with their annual return, using forms and procedures prescribed by the Department of Revenue, and authorizes the department to request additional proof. If the credit exceeds the taxpayer’s state income tax liability, the excess is refundable. The bill further provides a repayment penalty for any taxpayer who claims the credit without meeting the eligibility requirements. The act would take effect 60 days after enactment.
Impact
HB867 would create a new Article XVIII-I in the Tax Reform Code of 1971 and expand the state’s tax credit framework to include a stillbirth tax credit. It would affect individual Pennsylvania income taxpayers, the Department of Revenue, and the Department of Health by establishing new documentation, application, administration, and enforcement procedures tied to stillbirth certification. Because the credit is refundable, it could result in direct payments from the Commonwealth to eligible taxpayers whose credit exceeds their tax liability.
Sentiment
No committee transcript or vote history was provided, so there is no recorded debate or roll-call evidence to gauge legislative sentiment. Based on the bill text alone, the measure appears to be framed as a targeted tax relief and recognition measure for families experiencing stillbirth, with an administrative structure designed to verify claims and prevent misuse.
Contention
The main points of potential contention are likely to be the scope and definition of eligibility, including the 16-week gestational threshold and the requirement that the child would have been a federal dependent. Another likely issue is the need for documentary proof and the Department of Revenue’s authority to require additional evidence, which may raise privacy or administrative burden concerns. Because the credit is refundable, fiscal impact and the use of state funds could also be a point of debate.
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