Nebraska law allows tax credit for parents of stillborn children starting in 2022

Nebraska's Legislature Bill 710, introduced on January 24, 2025, aims to enhance tax relief for families and individuals facing significant life events. The bill proposes a refundable income tax credit of $2,000 for parents of stillborn children, a measure designed to provide financial support during a profoundly difficult time. This credit is applicable for taxable years beginning on or after January 1, 2022, and is contingent upon the filing of a fetal death certificate, confirming that the stillbirth occurred after the twentieth week of gestation.

The introduction of this bill has sparked notable discussions among lawmakers and advocacy groups. Proponents argue that the credit acknowledges the emotional and financial toll of stillbirth, offering much-needed assistance to grieving families. Critics, however, have raised concerns about the potential implications for state revenue and the administrative burden of implementing such a credit.

In addition to the stillbirth credit, LB710 encompasses various refundable credits against the income tax imposed by the Nebraska Revenue Act of 1967, including provisions related to biodiesel, property tax incentives, and relocation incentives. This broad approach aims to stimulate economic activity and support families across multiple sectors.

The bill's significance lies not only in its direct financial implications for affected families but also in its potential to shape Nebraska's tax landscape. Experts suggest that if passed, LB710 could set a precedent for future legislation aimed at providing targeted tax relief for specific life events, reflecting a growing recognition of the need for compassionate fiscal policies.

As the legislative session progresses, stakeholders will be closely monitoring the bill's journey through the Nebraska State Legislature, with discussions likely to continue around its economic and social ramifications. The outcome of LB710 could have lasting effects on how the state supports families during challenging times, reinforcing the importance of responsive governance in addressing the needs of its citizens.