The government of Carlos Mazón will triple the existing deductions in the regional section of the personal income tax (IRPF) by birth, adoption and foster care promote birth rate and family reconciliation in the Valencian Community. The Generalitat, which alone leads the PP, estimates that the expansion of these tax measures will benefit 42,000 people from the next tax return, with an economic impact of ten million euros.
The amount that Valencian taxpayers currently deduct from taxes for the first child – 300 euros – will now rise to 600 euros and will increase as the family burden increases, reaching 750 euros for the second and 900 euros for the third and subsequent children. In addition, families with children placed in foster care will also benefit deductions from the autonomous section of personal income tax which until now were limited to other types of families, which aims to offer everyone a homogeneous and fair tax treatment.
These are deductions for the birth or adoption of a disabled person; for non-occasional care in daycare and early childhood education centres of children or children placed in foster families under 3 years of age; to reconcile work and family life; and for the acquisition of school supplies.
Beyond the planned tax cut, Mazón’s government aims to become the first in Spain to legally protect the free education from 0 to 3 years oldas announced by the president of the region last week during the general policy debate held in the Valencian Parliament.
The measure, already in place in some regions of the country and which the PP wants to extend to all of Spain, was launched that same year in municipal schools and affiliated centres in the three Valencian provinces with 72,000 places offered and a public investment of 163 million euros.
After the break with Vox, Mazón does not have the necessary majority to achieve his goal of preventing political changes from affecting this issue, but he will force the rest of the forces to take a position in a future parliamentary vote.
Competitive advantage
With free education up to three years old and tax breaks for families, the Generalitat wants to have a competitive advantage over other regions for those who reside or plan to move to the Valencian Community for professional reasons.
Still at the municipal level, the mayor of Valencia, the popular María José Catalá, recently announced a direct and universal aid of 300 euros for each baby born in the city from January 1, 2025. At the same time, it will subsidize activities before the start of classes, known colloquially as “matineras,” and increase scholarships for the dining room.
All this within the framework of the policy of aid to medium and low incomes on which the PP of Alberto Núñez Feijóo is betting in terms of conciliation. In fact, the national leader of the popular parties will present this month to Congress a bill that provides for an increase and freedom to use paternity and maternity leave or tax incentives for companies that facilitate the reintegration of women on leave to raise their children.
