# What This Bill Does

This bill creates a new tax credit that helps parents pay for their kids' sports equipment. If you have a child playing in an organized youth sports program—think Little League baseball, soccer leagues, gymnastics classes, or similar activities—you could get money back on your taxes for the equipment costs you've paid during the year.

Here's how it works in practice: Say you spent $300 on soccer cleats, shin guards, and a uniform for your daughter's youth league this year. You could claim up to $200 of those expenses as a credit on your tax return, which means you'd owe $200 less in taxes. It's essentially the government helping offset some of the cost of getting your kid involved in organized sports.

However, there are some important limits. First, the maximum credit you can claim is $200 per year, no matter how much you actually spent on equipment. Second, this benefit starts to disappear if you make too much money. If your household income is above $150,000, the credit begins to reduce. Once your income reaches $215,000, the credit phases out completely and you can't use it at all. The credit only applies to equipment for dependents under age 19 who are participating in organized youth programs—not adult sports or private one-on-one coaching. If this bill becomes law, it would take effect for the 2024 tax year and beyond.

To amend the Internal Revenue Code of 1986 to allow a nonrefundable credit for certain organized sport equipment expenses.

Lawler, Michael

This bill allows a new income-based tax credit for qualified organized sport equipment expenses, up to $200 for a taxable year. The bill defines qualified organized sport equipment expenses as expenses for the participation of a taxpayer dependent in an organized sport, game, or hobby program that is primarily for unrelated individuals who have not attained age 19 to engage in such sport, game, or hobby.