Bill > HR4653

This bill establishes a new tax credit specifically designed to support first-time parents by providing a financial benefit through the Internal Revenue Code. The credit allows eligible new parents to claim $1,250 on their tax return, with married couples filing jointly able to claim $2,500. To qualify as an "eligible new parent," a taxpayer must not have previously claimed this credit and must either be the parent of a qualifying child (as defined by existing tax law) born or adopted during the current tax year, or be a non-custodial parent of a child born or adopted in the immediately preceding tax year. For non-custodial parents, specific requirements include having their name on the child's birth certificate and being unable to claim the child as a qualifying dependent in the year of the credit. The bill specifies that this tax credit will become effective for taxable years beginning after December 31, 2025, giving taxpayers and the IRS time to prepare for its implementation. By providing this financial support, the bill aims to offer economic assistance to families during the often expensive first year of a child's life.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/4653/all-info