Title: COVID–19 Youth Sports and Working Families Relief Act
Policy area: Taxation

Summary:
COVID-19 Youth Sports and Working Families Relief Act
This bill modifies the tax credit for household and dependent care expenses necessary for employment to include expenses for youth physical activities. Youth physical activities include organized individual and team sports, fitness and exercise, recreation, and other physical activities for youth who have attained age 4, but not age 18. The credit is refundable for taxable years beginning in 2020.
The bill also increases the dollar amount of the election for dependent care flexible spending arrangements.
The bill directs the Department of the Treasury to establish a relief fund for youth sport providers that directly serve youths age 18 and younger. The fund must disburse amounts to (1) alleviate losses sustained due to COVID-19 (i.e., coronavirus disease 2019), (2) sustain existing organizations that without assistance may fail or have to severely curtail operations, and (3) maintain youth participation capacity.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6912 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6912

To amend the Internal Revenue Code of 1986 to provide for youth sports, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 15, 2020

 Mr. Rose of New York (for himself and Mr. Gottheimer) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
 and in addition to the Committees on Education and Labor, 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, 
                        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 ``COVID-19 Youth Sports and Working 
Families Relief Act''.

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 
                        223(d)(5)).''.
    (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 221(c) of such Code is amended to 
read as follows:
    ``(c) Dollar Limit on Amount Creditable.--The amount of the 
employment-related expenses incurred during any taxable year which may 
be taken into account under subsection (a) shall not exceed--
            ``(1) if there is 1 qualifying individual with respect to 
        the taxpayer for such taxable year, the sum of--
                    ``(A) $3,000 of so much of employment-related 
                expenses as are described in clauses (i) and (ii) of 
                subsection (b)(2)(A), and
                    ``(B) $6,000 of so much of employment-related 
                expenses as are described in clause (iii) of subsection 
                (b)(2)(A), or
            ``(2) if there are 2 or more qualifying individuals with 
        respect to the taxpayer for such taxable year, the sum of--
                    ``(A) $6,000 of so much of employment-related 
                expenses as are described in clauses (i) and (ii) of 
                subsection (b)(2)(A), and
                    ``(B) $12,000 of so much of employment-related 
                expenses as are described in clause (iii) of subsection 
                (b)(2)(A).
The amounts determined under subparagraphs (A) and (B) of paragraph (1) 
or (2) (whichever is applicable) shall each be reduced by the aggregate 
amount for the same categories of expenses excludable from gross income 
under section 129 for the taxable year.''.
    (d) Refundable.--Section 21(e) of such Code is amended by adding at 
the end the following:
            ``(11) Credit refundable for 2020.--In the case of a 
        taxable year beginning in calendar year 2020, the credit 
        allowed under subsection (a) (determined without regard to this 
        paragraph and section 26(a)) shall be treated as a credit 
        allowable under subpart C (and not allowed under subsection 
        (a)).''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.

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, 2019.

SEC. 4. YOUTH PHYSICAL ACTIVITIES.

    (a) Health Savings Accounts.--Section 223(d) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following:
            ``(5) Youth physical activities.--For purposes of this 
        section, the term `medical expenses' includes registration 
        costs, fees, and expenses associated with--
                    ``(A) organized individual and team sports,
                    ``(B) fitness and exercise,
                    ``(C) recreation, and
                    ``(D) other physical activities for youth who have 
                attained age 4 but not age 18.''.
    (b) Flexible Spending Arrangements.--Section 106 of such Code is 
amended by adding at the end the following:
    ``(h) Reimbursements for Youth Physical Activities.--For purposes 
of this section and section 105, expenses incurred for youth physical 
activities (within the meaning of section 223(d)(5)) shall be treated 
as incurred for medical care.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.

SEC. 5. YOUTH SPORT PROVIDERS.

    (a) Establishment of Relief Fund.--The Secretary of the Treasury 
shall create a relief fund in the Treasury for youth sport providers.
    (b) Funding of Relief Fund.--Out of amounts in the Treasury not 
otherwise appropriated, there is appropriated to the relief fund 
established under subsection (a) such sums as may be necessary to carry 
out this section.
    (c) Distribution of Funds.--
            (1) In general.--The Secretary shall disburse amounts from 
        the relief fund established under subsection (a) in such a 
        manner as--
                    (A) to alleviate losses sustained as a result to 
                COVID-19,
                    (B) to be targeted to sustain existing 
                organizations that may, without such assistance, fail 
                or have to severally curtail operations, and
                    (C) aim to maintain youth participation capacity.
            (2) Priority.--In making disbursements from the relief fund 
        established under subsection (a), the Secretary shall give 
        priority consideration to programs serving under-served 
        communities.
            (3) Distribution rate.--The Secretary shall disburse 
        amounts not less than the following percentages of the total 
        amount in the fund established under subsection (a) within the 
        number of days designated in the following subparagraphs after 
        the date of the enactment of this Act:
                    (A) 25 percent of such amount shall be disbursed 
                within 14 days.
                    (B) 50 percent of such amount shall be disbursed 
                within 30 days.
                    (C) 90 percent of such amount shall be disbursed 
                within 60 days.
    (d) Youth Sport Providers.--The term ``youth sport provider'' means 
any organization that directly serves youths aged 18 and under. Such 
term includes--
            (1) sports-based youth development organizations,
            (2) interscholastic sports programs,
            (3) youth sports providers such as coaches, trainers, and 
        instructors, and
            (4) youth sport event providers.
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