AN ACT relating to an individual income tax credit for stillbirths.
The introduction of SB197 is designed to amend the Kentucky Revised Statutes, specifically KRS Chapter 141 related to income tax credits. By incorporating this credit into the existing tax framework, the legislation highlights the state’s acknowledgment of the emotional and financial impact of stillbirths on families. Over time, this credit may affect the overall tax revenue collected, as it presents an opportunity for the state to support individuals in overcoming sudden financial hurdles while attempting to cope with their losses.
SB197 proposes the creation of a nonrefundable individual income tax credit for families who experience a stillbirth. This financial assistance aims to alleviate some of the costs incurred as a result of the loss. The proposed credit would be available for taxable years starting from January 1, 2022, to January 1, 2026, and individuals would be entitled to claim a credit of $2,000 for each stillbirth, contingent upon providing the appropriate documentation, such as a combination birth-death or stillbirth certificate.
The sentiment surrounding the passage of SB197 appears to be largely supportive, as it addresses a sensitive and emotional issue faced by families dealing with stillbirth. Proponents likely view the measure as a compassionate gesture and strive to provide some alleviation of financial burdens. There may be underlying apprehension around the implementation of the credit, particularly regarding its long-term fiscal implications on state resources and tax revenues.
Despite general support, notable points of contention may arise concerning the eligibility criteria outlined, documentation requirements, and the implications for the statewide budget. Questions could emerge regarding whether the nonrefundable nature of the credit captures the full financial impact on families or effectively recognizes their loss. Furthermore, the need for rigorous reporting from the Department of Revenue on credit claims and associated county statistics could lead to administrative scrutiny and calls for adjustments to the bill in future legislative sessions.