The proposed bill amends the Tax Reform Code of 1971 by adding a new article, ARTICLE XVII-M, which introduces a Youth Activity Participation Tax Credit. This credit is designed for resident taxpayers with at least one qualified child under 18 years of age who participates in a qualified youth activity. The bill defines "qualified child," "qualified youth activity," and "qualified youth activity participation expense," outlining the criteria for eligibility and the types of activities and expenses that qualify for the tax credit.

Under the new provisions, taxpayers can claim a credit against their tax liability equal to the amount of qualified expenses incurred, with a maximum credit of $2,000 per qualified child. However, the credit cannot be refunded or carried over to other tax years, and only one credit can be claimed per qualified child. The article will take effect for taxable years beginning after December 31, 2026, and the Department of Revenue is tasked with establishing necessary forms for the administration of this credit.

Statutes/Laws affected:
Printer's No. 3845 (Aug 31, 2026): P.L.6, No.2