H.R. 4653: First-Time Parents Tax Credit Act

This legislation, titled the "First-Time Parents Tax Credit Act," aims to create a new tax credit for individuals who are first-time parents. Below is an overview of its key provisions:

New Tax Credit for First-Time Parents

The bill proposes a refundable tax credit for eligible new parents. Here are the main features:

• Amount of Credit: An eligible new parent can receive a credit of $1,250 against their taxes. If two eligible parents file a joint tax return, they can receive double the amount, totaling $2,500.

Eligibility Requirements

To qualify for the tax credit, the following conditions must be met:

• The individual must not have claimed this specific credit in any prior tax year.
• The individual must be one of the following:
• A parent of a child who was born or adopted during the current tax year.
• A non-custodial parent of a child who was born or adopted in the year before the current tax year.

Definition of Non-Custodial Parent

The bill defines a "non-custodial parent" as an individual whose name appears on the child’s birth certificate, yet who cannot claim the child as a qualifying child for tax purposes in the year the credit is applied.

Implementation and Amendments

The amendments to the tax code will be incorporated into the Internal Revenue Code of 1986. The provisions of this act would be effective for taxable years starting after December 31, 2025.

Conforming Amendments