[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5238 Introduced in House (IH)]

<DOC>






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.
                                 <all>