Home Run for Kids Act

Bill Number: H.R. 2637
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Taxation
Status: Introduced
Latest Action: 2025-04-03: Referred to the House Committee on Ways and Means.
Last Updated: 2025-08-27T08:05:33Z

AI-Generated Summary

Purpose

The "Home Run for Kids Act" (H.R. 2637) aims to encourage participation in organized youth sports, games, or hobbies by providing a tax credit to help offset the cost of related equipment for families with dependent children.

Key Provisions

Credit Amount and Eligibility: Eligible taxpayers can claim a nonrefundable tax credit (meaning it reduces tax owed but doesn't result in a refund if it exceeds the tax liability) equal to qualified expenses for equipment used in organized sports, games, or hobby programs. These programs must primarily serve unrelated individuals under age 19.
Qualified Expenses: Expenses must be for equipment connected to a taxpayer's dependent child (for whom they can claim a dependency deduction under tax law) participating in such programs.
Dollar Limit: The credit is capped at $200 per taxable year.
Income Phase-Out: The credit reduces for taxpayers with modified adjusted gross income (a measure of income that includes certain exclusions, like foreign earned income) over $150,000. It fully phases out at $215,000 ($150,000 plus a $65,000 phase-out range).
Effective Date: Applies to tax years beginning after December 31, 2023.

Significant Changes to Existing Law

Adds a new section (25F) to the Internal Revenue Code of 1986, specifically in the subpart dealing with nonrefundable personal tax credits.
Includes a clerical update to the code's table of sections for easy reference.
This introduces a targeted incentive not previously available, expanding the list of allowable nonrefundable credits beyond existing ones like those for education or energy efficiency.

Potential Impacts

On Citizens: Provides modest financial relief (up to $200) to middle- and lower-income families with children in youth activities, potentially making sports more accessible and promoting physical activity and social development among kids under 19.
On Government Agencies: The Internal Revenue Service (IRS) will need to process and verify claims, which could involve minor administrative updates to tax forms and guidance, but no major overhaul is required.
On International Relations: No direct impact, as this is a domestic tax policy focused on U.S. taxpayers and their dependents.

Main Stakeholders Affected

Families and Taxpayers: Primarily parents or guardians claiming dependents under age 19 involved in organized youth programs, especially those with incomes below $215,000 who purchase sports equipment.
Youth Organizations: Indirectly benefits sports leagues, clubs, or hobby groups by potentially increasing participation due to reduced equipment costs.
IRS and Treasury Department: Responsible for implementation, enforcement, and revenue tracking.

Notable Legal, Constitutional, or Political Implications

Legal: Aligns with existing tax code structures for credits, requiring no broad reinterpretation; however, it may lead to IRS guidance on what qualifies as "organized" programs or "equipment" to prevent abuse.
Constitutional: No apparent challenges, as it involves Congress's authority to levy and structure taxes under Article I of the U.S. Constitution.
Political: Represents a bipartisan-friendly incentive for family and child welfare, potentially appealing to voters concerned with youth health and affordability, but could spark debate over the federal cost (estimated revenue loss from credits) versus benefits in a budget-constrained environment.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Lawler, Michael [R-NY-17]

Cosponsors (1)

Rep. Gottheimer, Josh [D-NJ-5]

Recent Actions

2025-04-03: Referred to the House Committee on Ways and Means.
2025-04-03: Introduced in House
2025-04-03: Introduced in House

Bill Versions

Home Run for Kids Act — issued 2025-04-03 — PDF (3 pages)