This bill expands the definition of a qualifying child to include a stillborn child for purposes of the child tax credit. (Under current law, taxpayers may claim a tax credit of up $2,000 for each qualifying child.)Under the bill, a stillborn child is an unborn child (1) carried in the womb for a gestational period of 20 weeks or more, and (2) delivered after the spontaneous intrauterine fetal demise of the child.
The introduction of HB 570 represents an important step towards offering financial recognition and support to families who experience the tragedy of stillbirth. By enabling parents to claim a child tax credit for stillborn children, the bill seeks to alleviate some of the financial burdens associated with the additional costs incurred during a stillbirth, such as medical expenses, funeral costs, and emotional distress. The effective date of the amendment is set to apply to taxable years ending after the enactment of the Act, ensuring that families can start benefiting from these provisions soon after the bill becomes law.
House Bill 570 aims to amend the Internal Revenue Code of 1986 to extend the child tax credit to parents of stillborn children. The bill asserts that, in the event of a stillbirth—which is defined as the loss of a fetus after 20 weeks of gestation—the deceased unborn child should qualify as a 'qualifying child' for tax purposes. This means that parents could potentially receive the same financial benefits from the child tax credit as they would have if the child had been born alive.
Despite its compassionate intentions, HB 570 could spark debate regarding the implications it holds for tax policy and the definitions surrounding legal parenthood. Some legislators may question whether this credit enactment could lead to inconsistencies within the existing tax framework, while others may voice concerns about the overall financial implications on state revenue systems. Additionally, societal discussions regarding the acknowledgment of stillbirths may arise, as this bill directly engages with sensitive issues around loss, grief, and recognition of unborn lives.