Provides gross income tax credit to taxpayers for qualified youth sports expenses paid or incurred on behalf of dependents.

A4746

ASSEMBLY, No. 4746

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 19, 2026

Sponsored by:

Assemblywoman� MITCHELLE DRULIS

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Assemblyman� MICHAEL VENEZIA

District 34 (Essex)

Co-Sponsored by:

Assemblyman Sampson

SYNOPSIS

���� Provides gross income tax credit to taxpayers for
qualified youth sports expenses paid or incurred on behalf of dependents.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

providing a gross income tax credit to taxpayers
for qualified youth sports expenses and supplementing chapter 4 of Title 54A of
the New Jersey Statutes
.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.� A taxpayer shall be
allowed a credit against the tax otherwise due under the �New Jersey Gross
Income Tax Act,� N.J.S.54A:1-1 et seq., in an amount equal to the qualified
youth sports expenses paid or incurred by the taxpayer for, or on behalf of, a qualifying
individual during the taxable year, not to exceed $2,000 per qualifying
individual.

���� b.��� To claim the credit
allowed pursuant to this section, the taxpayer shall attach documentation to
any return which the taxpayer is required to file under N.J.S.54A:1-1 et seq.,
in a form and manner prescribed by the director, substantiating the qualified
youth sports expenses paid or incurred by the taxpayer during the taxable
year.� Such documentation shall include, but shall not be limited to:

���� (1)�� itemized receipts,
invoices, or contracts related to a qualifying individual�s participation in
youth sports, including any itemized receipts or invoices that clearly identify
the qualifying individual as a youth sports participant;

���� (2)�� canceled checks, credit
card statements, or other proof of payment corresponding to the itemized
receipts, invoices, or contracts;

���� (3)�� a description of the
itemized receipts, invoices, or contracts demonstrating that those expenses are
related to a qualifying individual�s participation in youth sports; and

���� (4)�� any additional
requirements and procedures the director deems necessary to prevent fraud and
ensure proper substantiation of qualified youth sports expenses.

���� c.���� As used in this
section:

���� "Qualified youth sports
expenses" means expenses paid or incurred for:� youth sports registration and
participation fees; youth sports uniforms, equipment, and safety gear; youth
sports travel expenses, including any transportation and lodging necessary for
participation in a youth sports tournament or event; youth sports training and
instructional fees; and youth sports tournament and event registration fees.

���� "Qualifying individual"
means a dependent of the taxpayer who is not younger than 10 years and not
older than 18 years during the taxable year in which the tax credit is claimed.

���� 2.��� Within the 12 months
following the enactment of P.L. , c. (C. )
(pending before the Legislature as this bill), the director shall take any
steps necessary to advertise the availability of the tax credit authorized
pursuant to section 1 of P.L. ,
c. (C. )
(pending before the Legislature as this bill), which advertisements shall be
provided, at a minimum, to municipalities, school districts, and youth sports
teams and leagues throughout the State.

���� 3.��� This act shall take
effect immediately and apply to taxable years beginning on or after the January
1 next following the date of enactment.

STATEMENT

���� This bill provides a gross
income tax credit to taxpayers who pay or incur qualified youth sports expenses
on behalf of certain children during the taxable year.

���� Under the bill, a taxpayer
would be allowed to claim a gross income tax credit for any qualified youth
sports expenses paid or incurred by the taxpayer on behalf of a qualifying
individual during the taxable year, not to exceed $2,000 per qualifying
individual.� The bill defines a �qualifying individual� to mean any dependent
of the taxpayer who is not younger than 10 years and not older than 18 years
during the taxable year in which the tax credit is claimed.

���� The bill defines �qualified
youth sports expenses� as expenses paid or incurred for:� (1) youth sports registration
and participation fees; (2) youth sports uniforms, equipment, and safety gear; (3)
youth sports travel expenses, including any transportation and lodging
necessary for participation in a youth sports tournament or event; (4) youth
sports training and instructional fees; and (5) youth sports tournament and
event registration fees.

���� The bill also requires the
Director of the Division of Taxation in the Department of the Treasury to take
any steps necessary to advertise the availability of the tax credit to
municipalities, school districts, and youth sports teams and leagues throughout
the State.