H.R. 8806

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8806 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 8806

To amend the Internal Revenue Code of 1986 to establish the newborn tax 
credit and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

May 13, 2026

Mr. Valadao (for himself, Mr. Suozzi, Mr. Moore of Utah, and Mrs. 
Dingell) introduced the following bill; which was referred to the 
Committee on Ways and Means

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to establish the newborn tax 
credit and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Supporting Newborn Parents Act of 
2026''.

SEC. 2. NEWBORN TAX CREDIT.

(a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 36B the following new section:

``SEC. 36C. NEWBORN TAX CREDIT.

``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this subtitle an amount equal to $2,000 for 
each qualifying child of the taxpayer born during the taxable year.
``(b) Qualifying Child.--For purposes of this section, the term 
`qualifying child' has the meaning given such term in section 152(c).
``(c) Phaseout.--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)).
``(d) Earned Income Requirement.--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.
``(e) Applicable Taxable Year.--For purposes of this section, the 
term `applicable taxable year' means--
``(1) the taxable year in which the qualifying child with 
respect to which the credit is allowed under subsection (a), or
``(2) at the election of the taxpayer, the preceding 
taxable year.
``(f) Advance Payment.--
``(1) In general.--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.
``(2) Election to use estimated income.--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--
``(A) by inserting `taxpayer's estimate of such 
taxpayer's' after `by which the' in subsection (c), and
``(B) by inserting `taxpayer's estimate of the 
taxpayer's' after `20 percent of the' in subsection 
(d).
``(3) Reconciliation of credit and advance credit.--If the 
aggregate payments made to the taxpayer under paragraph (1) 
during the taxable year exceeds the amount of the credit 
allowed under this section to such taxpayer for such taxable 
year, the tax imposed by this chapter for such taxable year 
shall be increased by the amount of such excess. Any failure to 
so increase the tax shall be treated as arising out of a 
mathematical or clerical error and assessed according to 
section 6213(b)(1).
``(g) Special Rule.--Rules similar to the rules of section 
24(h)(7)(A) shall apply to this section.
``(h) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year 
beginning after 2026, the $2,000 amount in subsection (a) shall 
be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) 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.
``(2) Rounding.--If any increase under paragraph (1) is not 
a multiple of $100, such increase shall be rounded to the 
nearest multiple of $10.''.
(b) Information Collected by Commissioner of Social Security.--
Section 205(c)(2)(B) of the Social Security Act (42 U.S.C. 
405(c)(2)(B)) is amended by adding at the end the following:
``(iv) The Commissioner shall, in carrying 
out the requirement of subparagraph (B)(i)(IV), 
require an individual applying for a social 
security account number on behalf of a child to 
provide to the Commissioner the following 
information:
``(I) The name of the parents.
``(II) The social security account 
numbers of the parents.
``(III) 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.
``(IV) An election as to the 
elections described in--
``(aa) section 36C(e)(2) of 
such Code,
``(bb) section 36C(f)(1) of 
such Code, and
``(cc) 36C(f)(2) of such 
Code.
``(V) The address of the parents.
``(VI) In the case the parents 
elect to receive a direct deposit, any 
information the Commissioner determines 
necessary to make the direct deposit.
``(VII) 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.
``(v) 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.''.
(c) Information for Taxpayers.--The Secretary of the Treasury, 
acting through the Commissioner of Internal Revenue, shall provide to 
each individual described in section 205(c)(2)(B)(iv) of the Social 
Security Act (42 U.S.C. 405(c)(2)(B)(iv)) plain language guidance--
(1) 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,
(2) 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
(3) to explain how reconciliation of the advanced credit 
under section 36C(f)(3) of such Code may affect the taxpayer.
(d) Online Portal.--The Secretary of the Treasury shall establish 
an online portal--
(1) which provides the information described in subsection 
(c), and
(2) through which a taxpayer may make an election under 
section 36C(f)(1) of such Code (as added by this section).
(e) Conforming Amendments.--
(1) Section 6211(b)(4)(A) of such Code is amended by 
inserting ``, 36C'' after ``36B''.
(2) Section 1324(b)(2) of title 31, United States Code, is 
amended by inserting ``, 36C'' after ``, 36B''.
(3) 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:

``Sec. 36C Newborn tax credit.''.
(f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.
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