First-Time Parents Tax Credit Act
Sponsored By: Representative Figures, Shomari [D-AL-2]
Introduced
Summary
A new tax credit of $1,250 per eligible new parent would give parents a direct tax break after a birth or adoption. The credit would double to $2,500 when two eligible parents file a joint return and would apply to tax years beginning after December 31, 2025.
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- Families with a newborn or adopted child: Eligible custodial parents who have not claimed the credit before could claim $1,250 for the taxable year the child is born or adopted.
- Non-custodial parents: A non-custodial parent whose name appears on the child’s birth certificate could claim the credit for a child born or adopted in the prior taxable year even if they cannot claim the child as a qualifying child.
- Joint filers: When both parents meet the eligibility rules and file jointly the credit doubles to a combined $2,500.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
One-time tax credit for new parents
If enacted, this would create a one-time credit to lower your federal income tax. It would be $1,250 per eligible new parent, or $2,500 if two eligible new parents file a joint return. You would qualify if you are the parent of a child born or adopted this year, under IRS “qualifying child” rules. Or, you could qualify as a non-custodial parent for a child born or adopted last year, if your name is on the birth certificate and you cannot claim the child this year. You could not claim the credit if you already claimed it in a past year. The credit would reduce the tax you owe for that year. It would start for tax years beginning after December 31, 2025.
Sponsors & CoSponsors
Sponsor
Figures, Shomari [D-AL-2]
AL • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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