AI Generated Summary
Purpose
To modify Minnesota’s individual income tax rules by adding a stillbirth-related tax credit. The bill creates a credit for eligible individuals for each birth that results in a stillbirth, helping families on their tax bill in the year the stillbirth occurs.
Main Provisions
- Credit amount: A credit of $2,000 (two thousand dollars) for each birth that results in a stillbirth.
- Certificate requirement: The birth must result in a stillbirth documented by a certificate of birth under section 144.2151.
- Timing: The credit can be claimed only in the taxable year in which the stillbirth occurred.
- Dependency requirement: The child would have been a dependent of the taxpayer under Internal Revenue Code section 152.
- Eligibility: The credit applies to eligible individuals who owe Minnesota income tax under the state tax code.
- Nonresident/part-year residents: For individuals who are nonresidents or part-year residents, the credit must be allocated based on the percentage calculated under Minnesota Statutes section 290.06, subdivision 2c, paragraph e.
Changes to Existing Law
- Adds a new subdivision to Minnesota Statutes 2024, section 290.0685, subdivision 1, to establish the stillbirth credit.
- Clarifies how the credit is calculated and allocated for residents and nonresidents, tying it to the stillbirth certificate and the dependent status.
How It Works in Practice
- A qualifying individual files their Minnesota tax return for the year of the stillbirth and claims the $2,000 credit for each eligible stillbirth birth.
- If the taxpayer is a nonresident or part-year resident, the credit is prorated according to the specified allocation method in 290.06, subdivision 2c, paragraph e.
Impact on Existing Law
- Introduces a new credit category within the Minnesota income tax system specifically tied to stillbirth events.
- Requires documentation via the stillbirth certificate process (section 144.2151) and uses the IRC 152 dependent definition for eligibility.
- Adds a method to allocate the credit for nonresidents/part-year residents, ensuring the credit aligns with residency status.
Relevant Terms stillbirth credit, eligible individual, Minnesota income tax, certificate of birth, stillbirth, section 144.2151, dependent, Internal Revenue Code 152, nonresident, part-year resident, allocation, 290.06 subdivision 2c paragraph e, taxable year, credit amount $2,000.
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 20, 2025 | Senate | Action | Introduction and first reading | ||
| February 20, 2025 | Senate | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Adds a stillbirth credit of 2,000 per birth.",
"Links the credit eligibility to a certificate of birth under section 144.2151.",
"Uses dependency criteria defined in the Internal Revenue Code (section 152).",
"Specifies nonresident/part-year resident credit allocation via section 290.06, subdivision 2c, paragraph e."
],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2024, section 290.0685, subdivision 1, to create a state individual income tax credit of $2,000 for each birth resulting in stillbirth, with eligibility tied to a certificate of birth issued under section 144.2151 and the child being a dependent as defined in the Internal Revenue Code (section 152). The credit is available only in the taxable year of the stillbirth. For nonresidents or part-year residents, the credit allocation follows Minnesota Statutes 290.06, subdivision 2c, paragraph e.",
"modified": [
"Modifies the stillbirth credit structure and eligibility under section 290.0685, subdivision 1."
]
},
"citation": "290.0685",
"subdivision": "1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Minnesota Statutes 144.2151 related to certificates of birth resulting in stillbirth.",
"modified": []
},
"citation": "144.2151",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References the Internal Revenue Code section 152 for defining dependent status in relation to the stillbirth credit.",
"modified": []
},
"citation": "26 U.S.C. 152",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Minnesota Statutes 290.06, subdivision 2c, paragraph e, for the allocation of the credit to nonresident or part-year residents.",
"modified": []
},
"citation": "290.06",
"subdivision": "2c paragraph e"
}
]Progress through the legislative process
In Committee