HR 8806
Supporting Newborn Parents Act of 2026
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Bill overview
The Supporting Newborn Parents Act of 2026 creates a new tax credit for qualifying newborns. Taxpayers can claim up to $2,000 per child born during the year, with the credit potentially reduced based on income. The bill also establishes a system for advance payments of the credit and requires the Social Security Administration to collect specific information from parents applying for their child’s social security number to facilitate these payments. Finally, it includes provisions for plain language guidance and an online portal to help taxpayers understand and utilize the new credit.
Key provisions
- Establishes a $2,000 newborn tax credit per qualifying child born.
- Credit is phased out based on modified adjusted gross income.
- Limits the credit to 20% of the taxpayer’s earned income.
- Allows for advance payments of the credit to taxpayers.
- Requires the Social Security Administration to collect specific information from parents.
- Provides plain language guidance and an online portal for taxpayers.
- Inflation adjustment to the credit amount beginning in 2027.
- Conforms references in the Internal Revenue Code.
Who is affected
- Taxpayers with newborns
- Parents of newborns
- Taxpayers with qualifying children
- The Social Security Administration
- The Internal Revenue Service
Notable changes
- Introduces a new tax credit specifically for newborn children.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
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119th CONGRESS — 2d Session
H. R. 8806
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Internal Revenue Code of 1986 to establish the newborn tax credit and for other purposes.
This Act may be cited as the Supporting Newborn Parents Act of 2026
.
For purposes of this section, the term qualifying child
has the meaning given such term in section 152(c).
The amount determined under subsection (a) shall be reduced by $50 for every $1,000 by which the modified adjusted gross income (as defined in section 24(b)(1)) of the taxpayer for the applicable taxable year exceeds the threshold amount (as defined in section 24(b)(2)).
The amount allowed under subsection (a) with respect to each qualifying child of the taxpayer shall not exceed the amount that is equal to 20 percent of the earned income (within the meaning of section 32) of the taxpayer for the applicable taxable year.
For purposes of this section, the term applicable taxable year
means—
the taxable year in which the qualifying child with respect to which the credit is allowed under subsection (a), or
at the election of the taxpayer, the preceding taxable year.
At the election of the taxpayer, the Secretary shall, not later than 6 weeks after receiving the information described in section 205(c)(2)(B)(iv) of the Social Security Act relating to a qualifying child of the taxpayer, make a payment to the taxpayer in an amount equal to the amount allowable as a credit to the taxpayer for the taxable year in which such qualifying child is born.
At the election of a taxpayer who has not made the election described in subsection (e)(2), the amount of the advanced payment under paragraph (1) may be determined—
by inserting taxpayer’s estimate of such taxpayer’s
after by which the
in subsection (c), and
by inserting taxpayer’s estimate of the taxpayer’s
after 20 percent of the
in subsection (d).
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2025
for calendar year 2016
in subparagraph (A)(ii) thereof.
If any increase under paragraph (1) is not a multiple of $100, such increase shall be rounded to the nearest multiple of $10.
The name of the parents.
The social security account numbers of the parents.
An election as to whether the parents want to receive the newborn tax credit determined under section 36C of the Internal Revenue Code of 1986 through direct deposit or a check in the mail.
An election as to the elections described in—
section 36C(e)(2) of such Code,
section 36C(f)(1) of such Code, and
36C(f)(2) of such Code.
The address of the parents.
In the case the parents elect to receive a direct deposit, any information the Commissioner determines necessary to make the direct deposit.
In the case of parents making an election to use estimated amounts under section 36C(f)(2) of such Code, the amount of the estimates described in such section.
The Commissioner shall submit the information received under clause (iv) to the Secretary of the Treasury not later than 45 days after the Commissioner issues a social security account number to the child who is the subject of such information.
to assist such individual to determine how elections made pursuant to sections 36C(e)(2), 36C(f)(1), and 36C(f)(2) of the Internal Revenue Code of 1986 will affect the amount of the credit determined for such taxpayer for the taxable year,
to assist such individual to determine estimated modified adjusted gross income (as defined in section 36C(b)(1) of such Code) and earned income (within the meaning of section 32 of such Code) for the taxable year, and
to explain how reconciliation of the advanced credit under section 36C(f)(3) of such Code may affect the taxpayer.
The Secretary of the Treasury shall establish an online portal—
which provides the information described in subsection (c), and
through which a taxpayer may make an election under section 36C(f)(1) of such Code (as added by this section).
Section 6211(b)(4)(A) of such Code is amended by inserting , 36C
after 36B
.
Section 1324(b)(2) of title 31, United States Code, is amended by inserting , 36C
after , 36B
.
The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item:
The amendments made by this section shall apply to taxable years beginning after December 31, 2025.