The First-Time Parents Tax Credit Act would create a new tax credit of $1,250 for first-time parents who have a child born or adopted in the current tax year, or $2,500 for married couples filing jointly where both are eligible new parents. The credit would also extend to non-custodial parents (those whose names appear on the birth certificate but who don't claim the child as a dependent) for children born or adopted in the immediately preceding year. The credit is refundable, meaning eligible taxpayers could receive the full amount even if they owe little or no income tax. The legislation applies to tax years beginning after December 31, 2025, and each taxpayer can only claim the credit once in their lifetime.
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