H.R.2637 - Home Run for Kids Act (119th Congress)
Summary
H.R.2637, the "Home Run for Kids Act," proposes an amendment to the Internal Revenue Code of 1986. The amendment introduces a nonrefundable tax credit for expenses related to organized sports equipment for dependents under 19 years of age. The credit is capped at $200, with income limitations reducing the credit for taxpayers with modified adjusted gross income exceeding $150,000.
Expected Effects
This bill, if enacted, would provide a tax break for families with children participating in organized sports. The credit is designed to offset the costs of equipment, potentially encouraging more children to participate in these activities. However, the income limitations mean that higher-income families will receive a reduced or no benefit.
Potential Benefits
- Provides a tax credit to help offset the cost of sports equipment for children.
- May encourage greater participation in organized sports among children.
- Could improve children's health and well-being through increased physical activity.
- Offers a small financial benefit to eligible families.
- Simplifies tax filing for those claiming the credit.
Most Benefited Areas:
Potential Disadvantages
- The credit is nonrefundable, meaning it can only reduce tax liability to zero and won't result in a refund.
- The $200 limit may not cover the full cost of sports equipment.
- The income limitation reduces or eliminates the credit for higher-income families.
- Adds complexity to the tax code.
- The overall economic impact is likely to be small.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution (Preamble). Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8, Clause 1). This bill uses the power of taxation to incentivize participation in organized sports, which could be argued as promoting the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).