Whereas we know a child who takes just one breath following their birth qualifies for the full child dependent tax credit, I humbly resolve we offer at the federal level a one-time child tax credit for stillborn children.
Stillborn children at just 20-weeks gestation become legally required to have a burial or cremation through a funeral home and while the medical cost of delivery is certainly anticipated by all expecting parents, funeral & burial/cremation costs are not.
Offering this tax credit will provide a meaningful financial buffer to families suffering from stillbirth. Eight states ( Arizona, Arkansas, Connecticut, Louisiana, Michigan, Minnesota, Nebraska, North Dakota) currently offer a tax credit or deduction to help offset these unexpected costs associated with stillbirth.
Providing a tax credit for stillborn children at the federal level will bring parity to this issue across all 50 states and encourage families to continue growing their family free in part from the unexpected financial crisis of stillbirth where health insurance and life insurance fail to step in.
A key problem that will be solved by passing this policy at the federal level is that families who live near a state border are often closer to hospitals in a neighboring state and do not qualify for this tax credit even if their state of residence offers this tax credit due to having suffered their stillbirth in an out-of-state facility.
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Stillbirths account for less than 0.5% of all US births (approx 21,000 per year)
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The National Funeral Directors Association places average funeral costs at $7,848
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There is no significant cost difference between burying a child and burying an adult
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Below is the draft bill text used to pass this proposed act in Minnesota
