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New legislation, aimed at providing parents the ability to claim $2,000 in tax credits to cover youth sports expenses, is gathering support.
According to Athletic Business, the bipartisan Promoting Lifelong Activity for Youth Act, or PLAY Act, was introduced by New Jersey congressman Josh Gottheimer. Congressman Mike Lawler of New York is supporting the bill and encouraging others to do the same.
The measure would allow parents to use the Child and Dependent Care Tax Credit for expenses tied to youth sports and physical activities, boost the maximum contribution per household, and create a federal grant program to support recreational sports leagues and nonprofit organizations.
WRNJ Radio notes that the measure is intended to help counteract budget cuts that could reduce or remove afterschool sports programs. The radio station said that last year, the average U.S. family spent $1,016 on their child’s primary sport, a 46 percent increase since 2019.
“Every kid in Jersey who wants to, should have the opportunity to write their own success story playing sports,” said Gottheimer, a member of the bipartisan Youth Sports Caucus. “But here’s the challenge: Youth sports have become more and more expensive, and for many families, simply unaffordable. The actions I’m announcing today are a win-win-win for kids, parents, and town rec leagues.”
Gottheimer added, “It may be competitive, but there is nothing partisan about rec sports. So many of us played rec sports growing up. I have no doubt that kids in New Milford, and across our state and country, will create memories that will last a lifetime.”
If the proposal as it is written becomes law, families would be able to use the tax credit for up to $2,000 in youth sports expenses. The bill would raise the overall credit to $4,000 for one child and $7,000 for two or more. The PLAY Act would also allow parents to pay for league registration fees and equipment with pre-tax dollars.
Gottheimer added that the act could also help parents with the ever-increasing costs of sports equipment.
“A baseball bat for teens can cost between $150 to $400,” he noted. “A glove can be $70 or more. Soccer cleats can cost $50 to $200 and if your child plays different sports, that can mean buying different types of cleats, since each is specially designed for each sport to reduce injuries.”
The result, Gottheimer said, is “too many families cannot afford to let their children play sports and receive all the great benefits they provide. So it’s not surprising that children from lower-income families, especially in urban areas, are nearly half as likely to play sports as children from homes with higher incomes.”
According to Gottheimer’s website, the PLAY Act will also put in place a federal grant program to invest in rec youth sports programs and nonprofit organizations, to expand opportunities, get more kids involved and help lower costs for families.
While Gottheimer targeted rec and school programming in his remarks, the wording of the measure itself does not specify whether the credits could be used for travel sports as well, a point that was brought up in the reader comments section of the Athletic Business article.
It is currently unknown whether (or even how) steps would be taken to differentiate the various types of sports programming available to children. Additionally, some private programs may have participation fees than others because of sponsorship support, grants or other means.
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