Fishing Equipment Tax Relief Act of 2025 (S 2972)

Bill Summary

The Fishing Equipment Tax Relief Act of 2025 is a bill introduced in the U.S. Senate that aims to provide tax relief and incentives for the purchase of fishing equipment by recreational anglers and small businesses in the fishing industry.

Key Provisions

The main provisions of the bill include:

1. Temporary Excise Tax Reduction: The bill would temporarily reduce the federal excise tax on the sale of fishing rods, reels, lures, and other recreational fishing equipment from 10% to 5% for a 2-year period.

2. Small Business Tax Credit: The legislation would establish a tax credit worth up to $2,000 per year for small businesses (those with fewer than 50 employees) that sell fishing equipment. This credit is intended to help offset the costs of the reduced excise tax.

3. Expanded Eligibility for Existing Tax Deductions: The bill would expand the eligibility for existing tax deductions related to the purchase of fishing equipment, making them available to a broader range of individual taxpayers and small businesses.

Impact and Affected Parties

The Fishing Equipment Tax Relief Act of 2025 is expected to have the following impacts:

• Recreational Anglers: The reduced excise tax on fishing equipment purchases would make it more affordable for individual recreational anglers to acquire new rods, reels, lures, and other gear.

• Fishing-Related Small Businesses: Small businesses, such as tackle shops and sporting goods stores, would benefit from the tax credit to help offset the reduced excise tax revenue. This could help them maintain inventory and pricing for customers.

• Fishing Industry: The tax relief measures are intended to stimulate sales and demand for fishing equipment, potentially providing a boost to manufacturers, distributors, and other businesses in the recreational fishing industry.

Timeline and Procedure

The bill was introduced in the Senate on October 3, 2025 and has been referred to the Senate Committee on Finance for further consideration. If enacted, the tax relief provisions would take effect starting on January 1, 2026 and expire on December 31, 2027, after the 2-year period.