Affordable Youth Enrichment Opportunities Act

Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 221 the following new section:

In the case of an individual, there shall be allowed as a deduction for the taxable year an amount equal to the qualified youth program expenditures paid or incurred by the taxpayer during such taxable year.

The deduction allowed by subsection (a) for the taxable year shall not exceed $5,000.

No deduction shall be allowed under subsection (a) for any taxable year if the modified adjusted gross income of the taxpayer for the taxable year exceeds the threshold amount.

For purposes of subparagraph (A), the term threshold amount means—

(i) $200,000 in the case of a joint return or a surviving spouse (as defined in section 2(a)),

(ii) $150,000 in the case of a head of household, and

(iii) $100,000 in the case of a taxpayer not described in clause (i) or (ii).

For purposes of this paragraph, the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.

No deduction shall be allowed by this section to an individual for the taxable year if a deduction under section 151 with respect to such individual is allowed to another taxpayer for the taxable year beginning in the calendar year in which such individual’s taxable year begins.

For purposes of this section—

The term qualified youth program expenditure means any expenditure for any dependent of the taxpayer who has not attained age 19 as of the date of such expenditure to participate in any qualified youth program. Such term includes any expenditure for equipment, training, digital platforms, or fees related to participating in such a program.

The term qualified youth program means—

(A) any tutoring or academic enrichment program or activity the purpose of which is to improve student academic performance or support student success,

(B) any athletic program or activity, including practices, competitions, training, or skills development,

(C) any artistic enrichment program or activity the purpose of which is to provide structured instruction in furtherance of enhancing student proficiency in the arts, including practices, rehearsals, and performances, and

(D) any other program determined by the Secretary, in consultation with the Secretary of Education, to be appropriate for youth enrichment.

The term dependent has the meaning given such term by section 152 (determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof).

No deduction shall be allowed under this section for any amount for which a deduction is allowable under any other provision of this chapter.

In the case of any taxable year beginning after 2027, each dollar amount contained in paragraphs (1) and (2)(B) of subsection (b) shall be increased by an amount equal to—

(A) such dollar amount, multiplied by

(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2026 for calendar year 2016 in subparagraph (A)(ii) thereof.

If any increase under this subsection is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.

The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 221 the following new item:

The amendments made by this section shall apply to taxable years beginning after December 31, 2026.