HB 867 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in tax credit and tax benefit administration, further providing for definitions; and providing for stillbirth tax credit.

PRINTER'S NO.    903

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 867
                                               Session of
                                                 2025

     INTRODUCED BY HARKINS, MAYES, GIRAL, KENYATTA AND SANCHEZ,
        MARCH 11, 2025

     REFERRED TO COMMITTEE ON FINANCE, MARCH 11, 2025


                                    AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," in tax credit and tax benefit administration,
11      further providing for definitions; and providing for
12      stillbirth tax credit.
13      The General Assembly of the Commonwealth of Pennsylvania
14   hereby enacts as follows:
15      Section 1.    The definition of "tax credit" in section 1701-
16   A.1 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
17   Reform Code of 1971, is amended by adding a paragraph to read:
18   Section 1701-A.1.    Definitions.
19      The following words and phrases when used in this article
20   shall have the meanings given to them in this section unless the
21   context clearly indicates otherwise:
22      * * *
23      "Tax credit."    A tax credit authorized under any of the
 1   following:
 2            * * *
 3            (14.2)   Article XVIII-I.
 4            * * *
 5      Section 2.     The act is amended by adding an article to read:
 6                              ARTICLE XVIII-I
 7                           STILLBIRTH TAX CREDIT
 8   Section 1801-I.    Definitions.
 9      The following words and phrases when used in this article
10   shall have the meanings given to them in this section unless the
11   context clearly indicates otherwise:
12      "Department."     The Department of Revenue of the Commonwealth.
13      "Qualified tax liability."      The liability for taxes imposed
14   under Article III.
15      "Stillbirth."     The expulsion or extraction from a mother of a
16   product of conception after 16 weeks gestation, which shows no
17   evidence of life after expulsion or extraction.
18      "Tax credit."     The stillbirth tax credit provided under this
19   article.
20      "Taxpayer."    An individual subject to payment of taxes under
21   Article III.
22   Section 1802-I.    Application.
23      (a)     Submission.--A taxpayer eligible under section 1803.1(a)
24   may submit an application for a tax credit under this article in
25   a manner prescribed by the department. The application shall
26   contain the following information:
27            (1)   The name and Social Security number of the taxpayer.
28            (2)   A copy of the certificate of fetal death or
29      certificate of birth resulting in stillbirth.
30            (3)   Any other information deemed appropriate by the

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 1      department.
 2      (b)   Procedure.--The application shall be attached to the
 3   applicant's annual tax return required to be filed under Article
 4   III.
 5   Section 1803-I.    Tax credit.
 6      (a)   Eligibility.--A taxpayer is eligible for a tax credit
 7   against the qualified tax liability of the taxpayer under
 8   subsection (b) if the taxpayer experiences a stillbirth.
 9      (b)   Maximum credit.--A taxpayer who qualifies under
10   subsection (a) may claim a tax credit of $2,000 for each
11   stillbirth for which a certificate of fetal death or certificate
12   of birth resulting in stillbirth has been issued by the
13   Department of Health.
14      (c)   Limitation.--The tax credit under this section may only
15   be claimed:
16            (1)   In the taxable year in which the stillbirth
17      occurred.
18            (2)   If the child would have been a "dependent" of the
19      taxpayer as defined under 26 U.S.C. § 152 (relating to
20      dependent defined).
21   Section 1804-I.    Credit refund.
22      If the amount of the tax credit that an individual is allowed
23   under this article exceeds the individual's State tax liability,
24   the department shall refund the excess to the individual.
25   Section 1805-I.    Guidelines.
26      The department shall issue guidelines, including forms,
27   necessary to administer this article. The department may require
28   additional proof of the claim for a tax credit.
29   Section 1806-I.    Penalty.
30      A taxpayer who claims a tax credit under this article but

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1   does not meet the eligibility requirements under section 1803-I
2   shall repay the full amount of the tax credit to the department.
3      Section 3.   This act shall take effect in 60 days.




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