Income tax, state; newborn and stillborn tax credit.

This legislation establishes a new state income tax credit for parents who experience the birth or stillbirth of a child. Taxpayers may claim a $2,500 credit on their state income tax returns for the taxable year in which the event occurs. The credit is intended to provide financial relief to families navigating the significant costs associated with childbirth or the emotional and financial challenges of a stillbirth. By reducing the overall tax burden for these households, the measure aims to support Arlington families during a period of transition or grief. The credit applies to tax years beginning on or after January 1, 2025, and provides a direct, non-refundable benefit to eligible Virginians across the Commonwealth.