Tax credit could be modified to accommodate stillbirths out of state

People enduring the tragedy of giving birth to a stillborn child have a tax credit available to them in Minnesota. Eligibility for the credit would become clearer under a change discussed by the House Taxes Committee Wednesday.

Under current law, an individual income tax credit of $2,000 is available to a parent of a stillborn child. HF37, sponsored by Rep. Jerry Hertaus (R-Greenfield), would make the law’s language more specific.

Rep. Jerry Hertaus

Qualifying individuals under the bill would be either a Minnesota resident or non-resident spouse of a member of the armed forces, who gave birth resulting in stillbirth. They also must be listed as a parent on a Department of Health “certificate of birth resulting in stillbirth” or similar certificate issued by another state. For part-year residents, the credit would be allocated based upon the percentage of their income attributable to Minnesota.

Hertaus said the change would primarily affect those living near the borders of other states or serving in the armed forces. He cited examples of western Minnesota residents who had a stillborn child in Fargo, N.D., and had difficulty claiming the credit.

He added that instances of a Minnesota resident experiencing a stillbirth outside the state occur about 200 times a year.

The bill was laid over for possible inclusion in the omnibus tax bill. The companion, SF517, is sponsored by Sen. Ann Rest (DFL-New Hope) and awaits action by the Senate Taxes Committee.