COVID–19 Youth Sports and Working Families Relief Act

I 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 Speak- er, in each case for consideration of such provisions as fall within the ju- risdiction 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘COVID–19 Youth 4 Sports and Working Families Relief Act’’. 5 VerDate Sep 11 2014 22:33 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6912.IH H6912 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 6912 IH SEC. 2. MODIFICATION OF CHILD AND DEPENDENT CARE 1 TAX CREDIT. 2 (a) ALLOWANCE OF EXPENSES FOR YOUTH PHYS- 3 ICAL ACTIVITIES.—Section 21(b)(2)(A) of the Internal 4 Revenue Code of 1986 is amended by striking ‘‘and’’ at 5 the end of clause (i), by striking the period at the end 6 of clause (ii) and inserting ‘‘, and’’, and by inserting after 7 clause (ii) the following: 8 ‘‘(iii) expenses for youth physical ac- 9 tivities (within the meaning of section 10 223(d)(5)).’’. 11 (b) EXCEPTION TO CAMP RULE.—Section 12 21(b)(2)(A) of such Code (as amended by subsection (a)) 13 is amended by striking ‘‘Such term’’ and inserting ‘‘Ex- 14 cept as provided by clause (iii), such term’’. 15 (c) DOLLAR LIMITATIONS.—Section 221(c) of such 16 Code is amended to read as follows: 17 ‘‘(c) DOLLAR LIMIT ON AMOUNT CREDITABLE.—The 18 amount of the employment-related expenses incurred dur- 19 ing any taxable year which may be taken into account 20 under subsection (a) shall not exceed— 21 ‘‘(1) if there is 1 qualifying individual with re- 22 spect to the taxpayer for such taxable year, the sum 23 of— 24 VerDate Sep 11 2014 22:33 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6912.IH H6912 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 6912 IH ‘‘(A) $3,000 of so much of employment-re- 1 lated expenses as are described in clauses (i) 2 and (ii) of subsection (b)(2)(A), and 3 ‘‘(B) $6,000 of so much of employment-re- 4 lated expenses as are described in clause (iii) of 5 subsection (b)(2)(A), or 6 ‘‘(2) if there are 2 or more qualifying individ- 7 uals with respect to the taxpayer for such taxable 8 year, the sum of— 9 ‘‘(A) $6,000 of so much of employment-re- 10 lated expenses as are described in clauses (i) 11 and (ii) of subsection (b)(2)(A), and 12 ‘‘(B) $12,000 of so much of employment- 13 related expenses as are described in clause (iii) 14 of subsection (b)(2)(A). 15 The amounts determined under subparagraphs (A) and 16 (B) of paragraph (1) or (2) (whichever is applicable) shall 17 each be reduced by the aggregate amount for the same 18 categories of expenses excludable from gross income under 19 section 129 for the taxable year.’’. 20 (d) REFUNDABLE.—Section 21(e) of such Code is 21 amended by adding at the end the following: 22 ‘‘(11) CREDIT REFUNDABLE FOR 2020.—In the 23 case of a taxable year beginning in calendar year 24 2020, the credit allowed under subsection (a) (deter- 25 VerDate Sep 11 2014 22:33 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6912.IH H6912 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 6912 IH mined without regard to this paragraph and section 1 26(a)) shall be treated as a credit allowable under 2 subpart C (and not allowed under subsection (a)).’’. 3 (e) EFFECTIVE DATE.—The amendments made by 4 this section shall apply to taxable years beginning after 5 December 31, 2019. 6 SEC. 3. INCREASE IN DOLLAR AMOUNT OF ELECTION FOR 7 DEPENDENT CARE FLEXIBLE SPENDING AR- 8 RANGEMENTS. 9 (a) IN GENERAL.—Section 125 of the Internal Rev- 10 enue Code of 1986 is amended by redesignating sub- 11 sections (k) and (l) as subsections (l) and (m) and insert- 12 ing after subsection (j) the following: 13 ‘‘(k) LIMITATION ON DEPENDENT CARE FLEXIBLE 14 SPENDING ARRANGEMENTS.— 15 ‘‘(1) IN GENERAL.—For purposes of this sec- 16 tion, if a benefit is provided under a cafeteria plan 17 through employer contributions to a dependent care 18 flexible spending arrangement, such benefit shall not 19 be treated as a qualified benefit unless the cafeteria 20 plan provides that an employee may not elect for 21 any taxable year to have salary reduction contribu- 22 tions in excess of $10,000 made to such arrange- 23 ment for each dependent under such arrangement. 24 VerDate Sep 11 2014 22:33 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6912.IH H6912 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 6912 IH ‘‘(2) SINGLE PARENT.—In the case that the 1 employee is an individual who is not married as of 2 the beginning of the taxable year for which the em- 3 ployee elects to participate in the arrangement, 4 paragraph (1) shall be applied by substituting 5 ‘$12,000’ for ‘$10,000’.’’. 6 (b) EFFECTIVE DATE.—The amendments made by 7 this section shall apply to taxable years beginning after 8 December 31, 2019. 9 SEC. 4. YOUTH PHYSICAL ACTIVITIES. 10 (a) HEALTH SAVINGS ACCOUNTS.—Section 223(d) of 11 the Internal Revenue Code of 1986 is amended by adding 12 at the end the following: 13 ‘‘(5) YOUTH PHYSICAL ACTIVITIES.—For pur- 14 poses of this section, the term ‘medical expenses’ in- 15 cludes registration costs, fees, and expenses associ- 16 ated with— 17 ‘‘(A) organized individual and team sports, 18 ‘‘(B) fitness and exercise, 19 ‘‘(C) recreation, and 20 ‘‘(D) other physical activities for youth 21 who have attained age 4 but not age 18.’’. 22 (b) FLEXIBLE SPENDING ARRANGEMENTS.—Section 23 106 of such Code is amended by adding at the end the 24 following: 25 VerDate Sep 11 2014 22:33 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H6912.IH H6912 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 6912 IH ‘‘(h) REIMBURSEMENTS FOR YOUTH PHYSICAL AC- 1 TIVITIES.—For purposes of this section and section 105, 2 expenses incurred for youth physical activities (within the 3 meaning of section 223(d)(5)) shall be treated as incurred 4 for medical care.’’. 5 (c) EFFECTIVE DATE.—The amendments made by 6 this section shall apply to taxable years beginning after 7 December 31, 2019. 8 SEC. 5. YOUTH SPORT PROVIDERS. 9 (a) ESTABLISHMENT OF RELIEF FUND.—The Sec- 10 retary of the Treasury shall create a relief fund in the 11 Treasury for youth sport providers. 12 (b) FUNDING OF RELIEF FUND.—Out of amounts in 13 the Treasury not otherwise appropriated, there is appro- 14 priated to the relief fund established under subsection (a) 15 such sums as may be necessary to carry out this section. 16 (c) DISTRIBUTION OF FUNDS.— 17 (1) IN GENERAL.—The Secretary shall disburse 18 amounts from the relief fund established under sub- 19 section (a) in such a manner as— 20 (A) to alleviate losses sustained as a result 21 to COVID-19, 22 (B) to be targeted to sustain existing orga- 23 nizations that may, without such assistance, fail 24 or have to severally curtail operations, and 25 VerDate Sep 11 2014 22:33 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H6912.IH H6912 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 6912 IH (C) aim to maintain youth participation 1 capacity. 2 (2) PRIORITY.—In making disbursements from 3 the relief fund established under subsection (a), the 4 Secretary shall give priority consideration to pro- 5 grams serving under-served communities. 6 (3) DISTRIBUTION RATE.—The Secretary shall 7 disburse amounts not less than the following per- 8 centages of the total amount in the fund established 9 under subsection (a) within the number of days des- 10 ignated in the following subparagraphs after the 11 date of the enactment of this Act: 12 (A) 25 percent of such amount shall be 13 disbursed within 14 days. 14 (B) 50 percent of such amount shall be 15 disbursed within 30 days. 16 (C) 90 percent of such amount shall be 17 disbursed within 60 days. 18 (d) YOUTH SPORT PROVIDERS.—The term ‘‘youth 19 sport provider’’ means any organization that directly 20 serves youths aged 18 and under. Such term includes— 21 (1) sports-based youth development organiza- 22 tions, 23 (2) interscholastic sports programs, 24 VerDate Sep 11 2014 22:33 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H6912.IH H6912 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 6912 IH (3) youth sports providers such as coaches, 1 trainers, and instructors, and 2 (4) youth sport event providers. 3 Æ VerDate Sep 11 2014 22:33 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\H6912.IH H6912 kjohnson on DSK79L0C42PROD with BILLS