Newborn and stillborn tax credit; establishes a refundable income tax credit.
The proposed tax credit under SB789 is designed to alleviate some financial burdens associated with childbirth and loss. With a specified period for claiming these credits from 2025 to 2030, the bill is projected to encourage acknowledgment and support for the emotional aspects surrounding pregnancy loss, particularly for stillborn children. By establishing a clear framework for eligibility and the amount of credit, the bill seeks to promote awareness about the difficulties faced by families and provide tangible government support.
Senate Bill 789 introduces a refundable income tax credit for families experiencing a newborn or stillborn birth in Virginia. The bill specifies that for taxable years beginning on or after January 1, 2025, eligible taxpayers can claim a tax credit of $2,000 for each newborn and for each stillborn birth that meets particular criteria. This legislation aims to provide financial support to families during what is often a difficult and emotional time. It highlights the importance of recognizing the loss of a child, even when not born alive, by offering a financial cushion via tax credits.
While the bill presents an opportunity for extended support to affected families, there may be points of contention surrounding its implementation. Critics could raise concerns about the budgetary implications of the refundable tax credit and whether it adequately reflects the needs of all families facing different experiences regarding childbirth and loss. Additionally, discussions may arise regarding the exclusion of surrogacy births from eligibility for the credit, potentially sparking debates regarding the definitions of parenthood and eligibility under state law.