HB1398

House Bill 1398 proposes an amendment to 'Paisley’s Law,' which provides an income tax credit for parents who experience a stillbirth. The primary action of the bill is to increase the existing income tax credit amount from $500 to $1,500. To qualify, the stillborn child must have been in gestation for 20 weeks or more, have a certificate of birth resulting in stillbirth, and would have been a dependent of the taxpayer. The credit is applicable only to the taxable year in which the stillbirth occurs and cannot exceed the total amount of income tax owed by the taxpayer. The bill also mandates that all state agency documents, forms, and manuals refer to the credit specifically as 'Paisley's Law.' The act is slated to be effective for tax years beginning on or after January 1, 2023.