HF1437 (Legislative Session 94 (2025-2026))
Stillbirth individual income tax credit modified.
Related bill: SF1646
AI Generated Summary
Purpose
- Adds a Minnesota individual income tax credit for stillbirths.
- The credit is available for each birth that results in a stillbirth, as evidenced by a certificate of birth issued under Minnesota law.
Main Provisions
- Credit amount: Eligible individuals may claim a credit equal to $2,000 for each birth that results in stillbirth.
- Eligibility and dependency: The birth must have a certificate of birth resulting in stillbirth issued under Minn. Stat. § 144.2151, and the child would have been a dependent of the taxpayer under Internal Revenue Code section 152.
- Timing: The credit may be claimed only in the taxable year in which the stillbirth occurred.
- Residency and allocation for nonresidents: For a nonresident or part-year resident, the credit must be allocated based on the percentage calculated under Minn. Stat. § 290.06, subd. 2c, par. e.
Significant Changes
- Creates a new stillbirth credit within the Minnesota income tax system.
- Ties eligibility to the child’s potential status as a dependent under IRC § 152 and to the issuance of a stillbirth certificate under Minn. Stat. § 144.2151.
- Establishes a specific allocation method for nonresidents and part-year residents, using the state income tax allocation rules in § 290.06, subd. 2c, par. e.
How This Changes Existing Law
- Amends Minn. Stat. 2024, § 290.0685, subd. 1 to add a credit for stillbirths, defined by the certificate and dependency criteria, and specifies residency-based allocation.
Practical Implications
- Families experiencing a stillbirth could receive a direct state income tax credit of up to $2,000, provided the conditions above are met.
- The credit is non-transferable and applies only in the year of the event.
- Nonresidents/part-year residents receive a prorated credit based on Minnesota-source factors.
Relevant Terms - stillbirth - certificate of birth resulting in stillbirth - stillbirth certificate - Minn. Stat. § 144.2151 - credit against the tax - $2,000 per birth - eligible individual - dependent (as defined in Internal Revenue Code § 152) - Internal Revenue Code § 152 - taxable year - nonresident - part-year resident - Minn. Stat. § 290.06, subd. 2c, par. e - Minn. Stat. § 290.0685, subd. 1 - allocation of credit
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 24, 2025 | House | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"A credit against the income tax equal to $2,000 for each birth resulting in stillbirth, where a certificate of birth was issued under section 144.2151."
],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2024 section 290.0685, subdivision 1 to add a stillbirth tax credit.",
"modified": [
"Specifies the credit is allowed only in the taxable year of the stillbirth and if the child would have been a dependent under the Internal Revenue Code."
]
},
"citation": "290.0685",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as the statute governing the certificate of birth resulting in stillbirth, which enables the new credit.",
"modified": []
},
"citation": "144.2151",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references the Internal Revenue Code section that defines a dependent for purposes of the credit.",
"modified": []
},
"citation": "26 U.S.C. § 152",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "For nonresidents or part-year residents, the credit allocation is based on the percentage under Minnesota Statutes 290.06 subdivision 2c, paragraph e.",
"modified": []
},
"citation": "290.06",
"subdivision": "subdivision 2c, paragraph e"
}
]Progress through the legislative process
In Committee