[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5238 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 5238
To amend the Internal Revenue Code of 1986 to provide for youth sports,
to establish a grant program for recreational youth sports, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 18, 2023
Mr. Gottheimer (for himself and Mr. Lawler) introduced the following
bill; which was referred to the Committee on Ways and Means, and in
addition to the Committees on Education and the Workforce, and Energy
and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide for youth sports,
to establish a grant program for recreational youth sports, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Promoting Lifelong Activity for
Youth Act of 2023'' or the ``PLAY Act of 2023''.
SEC. 2. MODIFICATION OF CHILD AND DEPENDENT CARE TAX CREDIT.
(a) Allowance of Expenses for Youth Physical Activities.--Section
21(b)(2)(A) of the Internal Revenue Code of 1986 is amended by striking
``and'' at the end of clause (i), by striking the period at the end of
clause (ii) and inserting ``, and'', and by inserting after clause (ii)
the following:
``(iii) expenses for youth physical
activities (within the meaning of section
213(d)(12)).''.
(b) Exception to Camp Rule.--Section 21(b)(2)(A) of such Code (as
amended by subsection (a)) is amended by striking ``Such term'' and
inserting ``Except as provided by clause (iii), such term''.
(c) Dollar Limitations.--Section 21(c) of such Code is amended to
read as follows:
``(c) Dollar Limit on Amount Creditable.--
``(1) In general.--The amount of the employment-related
expenses incurred during any taxable year which may be taken
into account under subsection (a) shall not exceed--
``(A) if there is 1 qualifying individual with
respect to the taxpayer for such taxable year, $4,000,
or
``(B) if there are 2 or more qualifying individuals
with respect to the taxpayer for such taxable year,
$7,000.
``(2) Reduction.--The amount determined under paragraph (1)
shall be reduced by the aggregate amount excludable from gross
income under section 129 for the taxable year.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2023.
SEC. 3. INCREASE IN DOLLAR AMOUNT OF ELECTION FOR DEPENDENT CARE
FLEXIBLE SPENDING ARRANGEMENTS.
(a) In General.--Section 125 of the Internal Revenue Code of 1986
is amended by redesignating subsections (k) and (l) as subsections (l)
and (m) and inserting after subsection (j) the following:
``(k) Limitation on Dependent Care Flexible Spending
Arrangements.--
``(1) In general.--For purposes of this section, if a
benefit is provided under a cafeteria plan through employer
contributions to a dependent care flexible spending
arrangement, such benefit shall not be treated as a qualified
benefit unless the cafeteria plan provides that an employee may
not elect for any taxable year to have salary reduction
contributions in excess of $10,000 made to such arrangement for
each dependent under such arrangement.
``(2) Single parent.--In the case that the employee is an
individual who is not married as of the beginning of the
taxable year for which the employee elects to participate in
the arrangement, paragraph (1) shall be applied by substituting
`$12,000' for `$10,000'.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2023.
SEC. 4. YOUTH PHYSICAL ACTIVITIES.
(a) In General.--Paragraph (1) of section 213(d) of the Internal
Revenue Code of 1986 is amended by striking ``or'' at the end of
subparagraph (C), by striking the period at the end of subparagraph (D)
and inserting ``, or'', and by inserting after subparagraph (D) the
following new subparagraph:
``(E) for youth physical activities.''.
(b) Youth Physical Activities.--Subsection (d) of section 213 of
the Internal Revenue Code of 1986 is amended by adding at the end the
following new paragraph:
``(12) Youth physical activities.--
``(A) In general.--The term `youth physical
activities' means registration costs, fees, and
expenses associated with the participation by
dependents of the taxpayer (as defined in section 152)
who have attained age 4 but not age 18 in the
following:
``(i) Membership at a fitness facility.
``(ii) Participation or instruction in
physical exercise or physical activity.
``(iii) Equipment used in a program
(including a self-directed program) of physical
exercise or physical activity.
``(B) Overall dollar limitation.--The aggregate
amount treated as youth physical activities with
respect to any taxpayer for any taxable year shall not
exceed $1,000 ($2,000 in the case of a joint return or
a head of household (as defined in section 2(b))).
``(C) Fitness facility.--For purposes of
subparagraph (A)(i), the term `fitness facility' means
a facility--
``(i) which provides instruction in a
program of physical exercise, offers facilities
for the preservation, maintenance,
encouragement, or development of physical
fitness, or serves as the site of such a
program of a State or local government,
``(ii) which is not a private club owned
and operated by its members,
``(iii) which does not offer golf, hunting,
sailing, or riding facilities,
``(iv) the health or fitness component of
which is not incidental to its overall function
and purpose, and
``(v) which is fully compliant with the
State of jurisdiction and Federal anti-
discrimination laws.
``(D) Treatment of exercise videos, etc.--Videos,
books, and similar materials shall be treated as
described in subparagraph (A)(ii) if the content of
such materials constitutes instruction in a program of
physical exercise or physical activity.
``(E) Limitations.--
``(i) Use of funds.--Amounts paid for
costs, fees, or expenses described in
subparagraph (A)(ii) shall be treated as paid
for youth physical activities only if such
amounts are not paid for--
``(I) tournament entries, or
``(II) private lessons, training,
or camps.
``(ii) Sports and fitness equipment.--
Amounts paid for equipment described in
subparagraph (A)(iii) shall be treated as paid
for youth physical activities only--
``(I) if such equipment is used
exclusively for participation in
fitness, exercise, sport, or other
physical activity,
``(II) in the case of amounts paid
for apparel or footwear, if such
apparel or footwear is of a type that
is necessary for, and is not used for
any purpose other than, a specific
physical activity, and
``(III) in the case of amounts paid
for any single item of sports equipment
(other than exercise equipment), to the
extent such amounts do not exceed $250.
``(F) Programs which include components other than
physical exercise and physical activity.--Rules similar
to the rules of paragraph (6) shall apply in the case
of any program that includes physical exercise or
physical activity and also other components. For
purposes of the preceding sentence, travel and
accommodations shall be treated as a separate
component.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2023.
SEC. 5. RECREATIONAL YOUTH SPORTS HHS GRANT PROGRAM.
(a) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Health and Human Services (in
this section referred to as the ``Secretary'') shall establish a
program to award grants, on a competitive basis, to eligible entities
for the purposes of expanding access to, and increasing the
participation capacity of, recreational youth sports--
(1) to decrease the costs of such participation for
families; and
(2) to promote healthy habits, physical activity, and
socialization.
(b) Applications.--To be eligible for a grant under this section,
an entity shall submit to the Secretary an application at such time, in
such manner, and containing such information as the Secretary
determines is appropriate, which shall include an attestation that the
entity will use the grant only for the purposes described in subsection
(a).
(c) Use of Funds.--
(1) In general.--A grant awarded under this section may not
be used--
(A) to construct or upgrade a facility; or
(B) to fund a component of a sports program that is
competitive, elite, or selective (including such a
component that involves travel).
(2) Rule of construction.--For the purposes of paragraph
(1), a component of a sports program shall not be construed as
competitive, elite, or selective solely because such component
includes games or matches in which a score is kept.
(3) Supplement, not supplant.--
(A) In general.--Subject to subparagraph (B), a
grant awarded under this section shall be used to
supplement, not supplant, funds from other sources.
(B) Exception.--A grant awarded under this section
may be used to supplant funds from other sources to
remove fees for families for the purpose of expanding
access to recreational youth sports.
(d) Grant Period.--A grant awarded under this section shall be for
a period of 2 years.
(e) Amount.--A grant awarded under this section shall be for an
amount--
(1) not less than $50,000; and
(2) not more than $2,000,000.
(f) Report.--Not later than 3 years after the date of enactment of
this Act, the Secretary shall submit to Congress a report containing an
assessment of how grants awarded under this section fulfilled the
purposes described in subsection (a).
(g) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity''--
(A) means--
(i) a local government;
(ii) a nonprofit organization;
(iii) a Tribal organization; and
(iv) a veterans organization; and
(B) does not include any entity or organization
of--
(i) an elementary school, a secondary
school, or a local educational agency (as such
terms are defined in section 8101 of the
Elementary and Secondary Education Act of 1965
(20 U.S.C. 7801)); or
(ii) an institution of higher education (as
defined in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001)).
(2) Nonprofit organization.--The term ``nonprofit
organization'' means an organization that is described in
section 501(c)(3) of the Internal Revenue Code of 1986 and that
is exempt from taxation under section 501(a) of such Code.
(3) Tribal organization.--The term ``Tribal organization''
has the meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 5304).
(4) Veterans organization.--The term ``veterans
organization'' means an organization that is described in
section 501(c)(19) of the Internal Revenue Code of 1986 and
that is exempt from taxation under section 501(a) of such Code.
(h) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $100,000,000 for the period of
fiscal years 2024 through 2025.
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