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.

HB 867 creates a $2,000 state tax credit for Pennsylvania taxpayers who experience a stillbirth after 16 weeks of gestation, defined as a product of conception expelled with no signs of life. The credit applies to the taxpayer's annual state tax liability and requires submission of a Department of Health certificate of fetal death or stillbirth with the tax return. Eligibility is limited to the taxable year of the stillbirth and requires the child to qualify as a "dependent" under federal tax law (26 U.S.C. § 152). Taxpayers may receive a refund for any unused credit amount exceeding their state tax liability. This credit directly affects Pennsylvania residents who have experienced a stillbirth meeting the defined criteria.