I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Promoting Lifelong 

5 Activity for Youth Act of 2023’’ or the ‘‘PLAY Act of 

6 2023’’. 


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1 SEC. 2. MODIFICATION OF CHILD AND DEPENDENT CARE 

2 TAX CREDIT. 

3 (a) ALLOWANCE OF EXPENSES FOR YOUTH PHYS4 ICAL ACTIVITIES.—Section 21(b)(2)(A) of the Internal 

5 Revenue Code of 1986 is amended by striking ‘‘and’’ at 

6 the end of clause (i), by striking the period at the end 

7 of clause (ii) and inserting ‘‘, and’’, and by inserting after 

8 clause (ii) the following: 

9 ‘‘(iii) expenses for youth physical ac10 tivities (within the meaning of section 

11 213(d)(12)).’’. 

12 (b) EXCEPTION TO CAMP RULE.—Section 

13 21(b)(2)(A) of such Code (as amended by subsection (a)) 

14 is amended by striking ‘‘Such term’’ and inserting ‘‘Ex15 cept as provided by clause (iii), such term’’. 

16 (c) DOLLAR LIMITATIONS.—Section 21(c) of such 

17 Code is amended to read as follows: 

18 ‘‘(c) DOLLAR LIMIT ON AMOUNT CREDITABLE.— 

19 ‘‘(1) IN GENERAL.—The amount of the employ20 ment-related expenses incurred during any taxable 

21 year which may be taken into account under sub22 section (a) shall not exceed— 

23 ‘‘(A) if there is 1 qualifying individual with 

24 respect to the taxpayer for such taxable year, 

25 $4,000, or 


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1 ‘‘(B) if there are 2 or more qualifying indi2 viduals with respect to the taxpayer for such 

3 taxable year, $7,000. 

4 ‘‘(2) REDUCTION.—The amount determined 

5 under paragraph (1) shall be reduced by the aggre6 gate amount excludable from gross income under 

7 section 129 for the taxable year.’’. 

8 (d) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to taxable years beginning after 

10 December 31, 2023. 

11 SEC. 3. INCREASE IN DOLLAR AMOUNT OF ELECTION FOR 

12 DEPENDENT CARE FLEXIBLE SPENDING AR13 RANGEMENTS. 

14 (a) IN GENERAL.—Section 125 of the Internal Rev15 enue Code of 1986 is amended by redesignating sub16 sections (k) and (l) as subsections (l) and (m) and insert17 ing after subsection (j) the following: 

18 ‘‘(k) LIMITATION ON DEPENDENT CARE FLEXIBLE

19 SPENDING ARRANGEMENTS.— 

20 ‘‘(1) IN GENERAL.—For purposes of this sec21 tion, if a benefit is provided under a cafeteria plan 

22 through employer contributions to a dependent care 

23 flexible spending arrangement, such benefit shall not 

24 be treated as a qualified benefit unless the cafeteria 

25 plan provides that an employee may not elect for 


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1 any taxable year to have salary reduction contribu2 tions in excess of $10,000 made to such arrange3 ment for each dependent under such arrangement. 

4 ‘‘(2) SINGLE PARENT.—In the case that the 

5 employee is an individual who is not married as of 

6 the beginning of the taxable year for which the em7 ployee elects to participate in the arrangement, 

8 paragraph (1) shall be applied by substituting 

9 ‘$12,000’ for ‘$10,000’.’’. 

10 (b) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to taxable years beginning after 

12 December 31, 2023. 

13 SEC. 4. YOUTH PHYSICAL ACTIVITIES. 

14 (a) IN GENERAL.—Paragraph (1) of section 213(d) 

15 of the Internal Revenue Code of 1986 is amended by strik16 ing ‘‘or’’ at the end of subparagraph (C), by striking the 

17 period at the end of subparagraph (D) and inserting ‘‘, 

18 or’’, and by inserting after subparagraph (D) the following 

19 new subparagraph: 

20 ‘‘(E) for youth physical activities.’’. 

21 (b) YOUTH PHYSICAL ACTIVITIES.—Subsection (d) 

22 of section 213 of the Internal Revenue Code of 1986 is 

23 amended by adding at the end the following new para24 graph: 

25 ‘‘(12) YOUTH PHYSICAL ACTIVITIES.— 


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1 ‘‘(A) IN GENERAL.—The term ‘youth phys2 ical activities’ means registration costs, fees, 

3 and expenses associated with the participation 

4 by dependents of the taxpayer (as defined in 

5 section 152) who have attained age 4 but not 

6 age 18 in the following: 

7 ‘‘(i) Membership at a fitness facility. 

8 ‘‘(ii) Participation or instruction in 

9 physical exercise or physical activity. 

10 ‘‘(iii) Equipment used in a program 

11 (including a self-directed program) of 

12 physical exercise or physical activity. 

13 ‘‘(B) OVERALL DOLLAR LIMITATION.—The 

14 aggregate amount treated as youth physical ac15 tivities with respect to any taxpayer for any 

16 taxable year shall not exceed $1,000 ($2,000 in 

17 the case of a joint return or a head of house18 hold (as defined in section 2(b))). 

19 ‘‘(C) FITNESS FACILITY.—For purposes of 

20 subparagraph (A)(i), the term ‘fitness facility’ 

21 means a facility— 

22 ‘‘(i) which provides instruction in a 

23 program of physical exercise, offers facili24 ties for the preservation, maintenance, en25 couragement, or development of physical 


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1 fitness, or serves as the site of such a pro2 gram of a State or local government, 

3 ‘‘(ii) which is not a private club owned 

4 and operated by its members, 

5 ‘‘(iii) which does not offer golf, hunt6 ing, sailing, or riding facilities, 

7 ‘‘(iv) the health or fitness component 

8 of which is not incidental to its overall 

9 function and purpose, and 

10 ‘‘(v) which is fully compliant with the 

11 State of jurisdiction and Federal anti-dis12 crimination laws. 

13 ‘‘(D) TREATMENT OF EXERCISE VIDEOS, 

14 ETC.—Videos, books, and similar materials 

15 shall be treated as described in subparagraph 

16 (A)(ii) if the content of such materials con17 stitutes instruction in a program of physical ex18 ercise or physical activity. 

19 ‘‘(E) LIMITATIONS.— 

20 ‘‘(i) USE OF FUNDS.—Amounts paid 

21 for costs, fees, or expenses described in 

22 subparagraph (A)(ii) shall be treated as 

23 paid for youth physical activities only if 

24 such amounts are not paid for— 

25 ‘‘(I) tournament entries, or 


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1 ‘‘(II) private lessons, training, or 

2 camps. 

3 ‘‘(ii) SPORTS AND FITNESS EQUIP4 MENT.—Amounts paid for equipment de5 scribed in subparagraph (A)(iii) shall be 

6 treated as paid for youth physical activities 

7 only— 

8 ‘‘(I) if such equipment is used 

9 exclusively for participation in fitness, 

10 exercise, sport, or other physical activ11 ity, 

12 ‘‘(II) in the case of amounts paid 

13 for apparel or footwear, if such ap14 parel or footwear is of a type that is 

15 necessary for, and is not used for any 

16 purpose other than, a specific physical 

17 activity, and 

18 ‘‘(III) in the case of amounts 

19 paid for any single item of sports 

20 equipment (other than exercise equip21 ment), to the extent such amounts do 

22 not exceed $250. 

23 ‘‘(F) PROGRAMS WHICH INCLUDE COMPO24 NENTS OTHER THAN PHYSICAL EXERCISE AND

25 PHYSICAL ACTIVITY.—Rules similar to the rules 


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1 of paragraph (6) shall apply in the case of any 

2 program that includes physical exercise or phys3 ical activity and also other components. For 

4 purposes of the preceding sentence, travel and 

5 accommodations shall be treated as a separate 

6 component.’’. 

7 (c) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to taxable years beginning after 

9 December 31, 2023. 

10 SEC. 5. RECREATIONAL YOUTH SPORTS HHS GRANT PRO11 GRAM. 

12 (a) ESTABLISHMENT.—Not later than 1 year after 

13 the date of enactment of this Act, the Secretary of Health 

14 and Human Services (in this section referred to as the 

15 ‘‘Secretary’’) shall establish a program to award grants, 

16 on a competitive basis, to eligible entities for the purposes 

17 of expanding access to, and increasing the participation 

18 capacity of, recreational youth sports— 

19 (1) to decrease the costs of such participation 

20 for families; and 

21 (2) to promote healthy habits, physical activity, 

22 and socialization. 

23 (b) APPLICATIONS.—To be eligible for a grant under 

24 this section, an entity shall submit to the Secretary an 

25 application at such time, in such manner, and containing 


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1 such information as the Secretary determines is appro2 priate, which shall include an attestation that the entity 

3 will use the grant only for the purposes described in sub4 section (a). 

5 (c) USE OF FUNDS.— 

6 (1) IN GENERAL.—A grant awarded under this 

7 section may not be used— 

8 (A) to construct or upgrade a facility; or 

9 (B) to fund a component of a sports pro10 gram that is competitive, elite, or selective (in11 cluding such a component that involves travel). 

12 (2) RULE OF CONSTRUCTION.—For the pur13 poses of paragraph (1), a component of a sports pro14 gram shall not be construed as competitive, elite, or 

15 selective solely because such component includes 

16 games or matches in which a score is kept. 

17 (3) SUPPLEMENT, NOT SUPPLANT.— 

18 (A) IN GENERAL.—Subject to subpara19 graph (B), a grant awarded under this section 

20 shall be used to supplement, not supplant, 

21 funds from other sources. 

22 (B) EXCEPTION.—A grant awarded under 

23 this section may be used to supplant funds from 

24 other sources to remove fees for families for the 


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1 purpose of expanding access to recreational 

2 youth sports. 

3 (d) GRANT PERIOD.—A grant awarded under this 

4 section shall be for a period of 2 years. 

5 (e) AMOUNT.—A grant awarded under this section 

6 shall be for an amount— 

7 (1) not less than $50,000; and 

8 (2) not more than $2,000,000. 

9 (f) REPORT.—Not later than 3 years after the date 

10 of enactment of this Act, the Secretary shall submit to 

11 Congress a report containing an assessment of how grants 

12 awarded under this section fulfilled the purposes described 

13 in subsection (a). 

14 (g) DEFINITIONS.—In this section: 

15 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti16 ty’’— 

17 (A) means— 

18 (i) a local government; 

19 (ii) a nonprofit organization; 

20 (iii) a Tribal organization; and 

21 (iv) a veterans organization; and 

22 (B) does not include any entity or organi23 zation of— 

24 (i) an elementary school, a secondary 

25 school, or a local educational agency (as 


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1 such terms are defined in section 8101 of 

2 the Elementary and Secondary Education 

3 Act of 1965 (20 U.S.C. 7801)); or 

4 (ii) an institution of higher education 

5 (as defined in section 101 of the Higher 

6 Education Act of 1965 (20 U.S.C. 1001)). 

7 (2) NONPROFIT ORGANIZATION.—The term 

8 ‘‘nonprofit organization’’ means an organization that 

9 is described in section 501(c)(3) of the Internal Rev10 enue Code of 1986 and that is exempt from taxation 

11 under section 501(a) of such Code. 

12 (3) TRIBAL ORGANIZATION.—The term ‘‘Tribal 

13 organization’’ has the meaning given the term in 

14 section 4 of the Indian Self-Determination and Edu15 cation Assistance Act (25 U.S.C. 5304). 

16 (4) VETERANS ORGANIZATION.—The term ‘‘vet17 erans organization’’ means an organization that is 

18 described in section 501(c)(19) of the Internal Rev19 enue Code of 1986 and that is exempt from taxation 

20 under section 501(a) of such Code. 

21 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

22 authorized to be appropriated to carry out this section 

23 $100,000,000 for the period of fiscal years 2024 through 

24 2025. 

Æ 


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