Senate File 2014 - Introduced SENATE FILE 2014 BY LOFGREN A BILL FOR An Act providing an individual income tax credit to parents of 1 stillborn children, and including retroactive applicability 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5316XS (3) 87 mm/jh
S.F. 2014 Section 1. Section 422.12, subsection 2, Code 2018, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . e. A stillbirth tax credit equal to one 3 thousand dollars for each stillbirth that occurs during a tax 4 year if all of the following requirements are satisfied: 5 (1) The taxpayer obtained a certificate of birth resulting 6 in stillbirth pursuant to section 144.31A with respect to the 7 stillbirth or, if the stillbirth occurred outside the state but 8 the taxpayer is a resident, the taxpayer obtained sufficient 9 documentation of the stillbirth from the jurisdiction where 10 the stillbirth occurred. For purposes of this subparagraph, 11 “sufficient documentation” shall be defined by rule adopted 12 by the Iowa department of public health, and may include but 13 is not limited to similar state certificates or physician 14 certifications. 15 (2) Had the stillbirth not occurred, the child would have 16 been eligible to be claimed as a dependent by the taxpayer. 17 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 18 retroactively to January 1, 2018, for tax years beginning on 19 or after that date. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill provides an individual income tax credit equal 24 to $1,000 for parents of a stillborn child who experience 25 a stillbirth during the tax year. To qualify for the tax 26 credit, the taxpayer must meet certain requirements. First, 27 the taxpayer must have been eligible, had the stillbirth not 28 occurred, to claim the child as a dependent under the Internal 29 Revenue Code. Second, the taxpayer must obtain a certificate 30 of birth resulting in stillbirth from the Iowa department of 31 public health (department). If the stillbirth occurs outside 32 Iowa but the taxpayer is an Iowa resident, the taxpayer must 33 obtain other sufficient documentation of the stillbirth. 34 The bill requires the department to define “sufficient 35 -1- LSB 5316XS (3) 87 mm/jh 1/ 2
S.F. 2014 documentation” by rule. 1 The tax credit is nonrefundable and any credit in excess of 2 the taxpayer’s tax liability shall not be carried forward to 3 another year. 4 The bill applies retroactively to January 1, 2018, for tax 5 years beginning on or after that date. 6 -2- LSB 5316XS (3) 87 mm/jh 2/ 2