First-Time Parents Tax Credit Act

This legislation establishes a new refundable tax credit within the Internal Revenue Code, designed to support first-time parents. The credit provides $1,250 for an eligible new parent, which increases to $2,500 for two eligible new parents filing a joint return. To qualify as an "eligible new parent" , a taxpayer must not have claimed the credit in a prior year and must be the parent of a qualifying child born or adopted during the taxable year. Alternatively, a "non-custodial parent" of a child born or adopted in the immediately preceding taxable year may also be eligible if their name is on the birth certificate and they cannot claim the child as a qualifying child. These provisions aim to offer financial assistance to families welcoming a new child and will become effective for taxable years beginning after December 31, 2025 .