,i #aafth ,,congress #b;d ,session ,h4 ,r4 #gefb ,,in ,,the ,,house ,,of ,,representatives ,july #i1 #bjbj,mr4 ,rose of ,new ,york 7for himself1 ,mr4 ,fitzpatrick1 ,mr4 ,gottheimer1 ,mr4 ,cisneros1 ,ms4 ,clarke of ,new ,york1 ,mrs4 ,davis of ,california1 ,ms4 ,norton1 ,mr4 ,gonzalez of ,texas1 ,mr4 ,michael ,f4 ,doyle of ,pennsylvania1 ,ms4 ,scanlon1 ,mr4 ,veasey1 ,mr4 ,raskin1 ,ms4 ,schakowsky1 and ,ms4 ,sewell of ,alabama7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,small ,business1 for a period to be subsequently determined by the ,speaker1 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 #aihf to provide for youth sports1 to amend the ,small ,business ,act to establish a loan program for youth sports providers1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,covid-#ai ,youth ,sports and ,healthy ,working ,families ,relief ,act4 #b4 ,modification of child and dependent care tax credit 7a7 ,allowance of expenses for youth physical activities ,section #ba7;b77#b77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of clause 7i71 by striking the period at the end of clause 7ii7 and inserting 1 and1 and by inserting after clause 7ii7 the following3 7iii7 expenses for youth physical activities 7within the meaning of section #bbc7;d77#e774 4 7b7 ,exception to camp rule ,section #ba7;b77#b77;,a7 of such ,code 7as amended by subsection 7a77 is amended by striking ,such term and inserting ,except as provided by clause 7iii71 such term4 7c7 ,dollar limitations ,section #bba7;c7 of such ,code is amended to read as follows3 7c7 ,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 7a7 shall not exceed-- 7#a7 if there is #a qualifying individual with respect to the taxpayer for such taxable year1 the sum of-- 7,a7 #c1jjj of so much of employment-related expenses as are described in clauses 7i7 and 7ii7 of subsection 7b77#b77;,a71 and 7,b7 #f1jjj of so much of employment-related expenses as are described in clause 7iii7 of subsection 7b77#b77;,a71 or 7#b7 if there are #b or more qualifying individuals with respect to the taxpayer for such taxable year1 the sum of-- 7,a7 #f1jjj of so much of employment-related expenses as are described in clauses 7i7 and 7ii7 of subsection 7b77#b77;,a71 and 7,b7 #ab1jjj of so much of employment-related expenses as are described in clause 7iii7 of subsection 7b77#b77;,a74 ,the amounts determined under subparagraphs 7,a7 and 7,b7 of paragraph 7#a7 or 7#b7 7whichever is applicable7 shall each be reduced by the aggregate amount for the same categories of expenses excludable from gross income under section #abi for the taxable year4 4 7d7 ,refundable ,section #ba7;e7 of such ,code is amended by adding at the end the following3 7#aa7 ,credit refundable for #bjbj ,in the case of a taxable year beginning in calendar year #bjbj1 the credit allowed under subsection 7a7 7determined without regard to this paragraph and section #bf7;a77 shall be treated as a credit allowable under subpart ,c 7and not allowed under subsection 7a774 4 7e7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #c4 ,increase in dollar amount of election for dependent care flexible spending arrangements 7a7 ,in general ,section #abe of the ,internal ,revenue ,code of #aihf is amended by redesignating subsections 7k7 and 7l7 as subsections 7l7 and 7m7 and inserting after subsection 7j7 the following3 7k7 ,limitation on dependent care flexible spending arrangements 7#a7 ,in general ,for purposes of this section1 if a benefit is provided under a cafeteria plan through employer contributions to a dependent care flexible spending arrangement1 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 #aj1jjj made to such arrangement for each dependent under such arrangement4 7#b7 ,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 arrangement1 paragraph 7#a7 shall be applied by substituting #ab1jjj for #aj1jjj4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #d4 ,youth and family physical activities 7a7 ,in general ,paragraph 7#a7 of section #bac7;d7 of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of subparagraph 7,c71 by striking the period at the end of subparagraph 7,d7 and inserting 1 or1 and by inserting after subparagraph 7,d7 the following new subparagraph3 7,e7 for qualified sports and fitness expenses4 4 7b7 ,qualified sports and fitness expenses ,subsection 7d7 of section #bac of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#ab7 ,qualified sports and fitness expenses 7,a7 ,in general ,the term qualified sports and fitness expenses means amounts paid exclusively for the sole purpose of participating in a physical activity including-- 7i7 for membership at a fitness facility1 7ii7 for participation or instruction in physical exercise or physical activity1 or 7iii7 for equipment used in a program 7including a self-directed program7 of physical exercise or physical activity4 7,b7 ,overall dollar limitation ,the aggregate amount treated as qualified sports and fitness expenses with respect to any taxpayer for any taxable year shall not exceed #a1jjj 7#b1jjj in the case of a joint return or a head of household 7as defined in section #b7;b7774 7,c7 ,fitness facility ,for purposes of subparagraph 7,a77i71 the term fitness facility means a facility-- 7i7 which provides instruction in a program of physical exercise1 offers facilities for the preservation1 maintenance1 encouragement1 or development of physical fitness1 or serves as the site of such a program of a ,state or local government1 7ii7 which is not a private club owned and operated by its members1 7iii7 which does not offer golf1 hunting1 sailing1 or riding facilities1 7iv7 the health or fitness component of which is not incidental to its overall function and purpose1 and 7v7 which is fully compliant with the ,state of jurisdiction and ,federal anti-discrimination laws4 7,d7 ,treatment of exercise videos1 etc ,videos1 books1 and similar materials shall be treated as described in subparagraph 7,a77ii7 if the content of such materials constitutes instruction in a program of physical exercise or physical activity4 7,e7 ,limitations related to sports and fitness equipment ,amounts paid for equipment described in subparagraph 7,a77iii7 shall be treated as qualified sports and fitness expenses only-- 7i7 if such equipment is utilized exclusively for participation in fitness1 exercise1 sport1 or other physical activity1 7ii7 in the case of amounts paid for apparel or footwear1 if such apparel or footwear is of a type that is necessary for1 and is not used for any purpose other than1 a specific physical activity1 and 7iii7 in the case of amounts paid for any single item of sports equipment 7other than exercise equipment71 to the extent such amounts do not exceed #bej4 7,f7 ,programs which include components other than physical exercise and physical activity ,rules similar to the rules of paragraph 7#f7 shall apply in the case of any program that includes physical exercise or physical activity and also other components4 ,for purposes of the preceding sentence1 travel and accommodations shall be treated as a separate component4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #e4 ,youth sport providers loan program 7a7 ,definitions ,in this section1 the terms ,administration and ,administrator mean the ,small ,business ,administration and the ,administrator thereof1 respectively4 7b7 ,in general ,section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77 is amended-- 7#a7 in paragraph 7#b7-- 7,a7 in subparagraph 7,a71 in the matter preceding clause 7i71 by striking and 7,f7 and inserting 7,f71 and 7,g72 and 7,b7 by adding at the end the following3 7,g7 ,participation in the youth sports provider loan program ,in an agreement to participate in a loan on a deferred basis under paragraph 7#cg71 the participation by the ,administration shall be #ajj percent4 2 and 7#b7 by adding at the end the following3 7#cg7 ,youth sports provider loan program 7,a7 ,definitions ,in this paragraph-- 7i7 the terms appropriate ,federal banking agency and insured depository institution have the meanings given those terms in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 7ii7 the term covered loan means a loan made under this paragraph during the covered period2 7iii7 the term covered period means the period beginning on ,march #a1 #bjbj1 and ending on ,december #ca1 #bjbj2 7iv7 the term eligible recipient means an individual or entity that is a youth sports provider and is eligible to receive a covered loan2 7v7 the term eligible self-employed individual has the meaning given the term in section #gjjb7;b7 of the ,families ,first ,coronavirus ,response ,act 7,public ,law #aaf-abg72 7vi7 the term high priority area means a geographic area for which an eligible recipient is a small business concern owned and controlled by socially and economically disadvantaged individuals1 a small business concern owned and controlled by women1 or a small business concern owned and controlled by veterans-- 7,i7 working in or attracting youth participants from low income1 underserved1 or rural communities 7based on ,,zip code72 7,,ii7 working with populations disproportionately affected by ,,covid-#ai 7based on ,,zip code72 and 7,,iii7 working with populations of youth that already have low access to quality sports programs2 7vii7 the term insured credit union has the meaning given the term in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb72 7viii7 the term nonprofit organization means an organization that is described in section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf and that is exempt from taxation under section #eja7;a7 of such ,code2 7ix7 the term operating losses means regular operating expenses accrued since ,january #a1 #bjbj1 through the date of the loan application since ,january #a1 #bjbj1 minus revenue generated over that period2 7x7 the term regular operating expenses-- 7,i7 means expenses incurred in the regular operations of business and includes-- 7aa7 payroll costs 7as defined in paragraph 7#cf772 7bb7 other expenses relating to workforce support1 including #ajii-,,misc contractors and volunteers1 such as contractor fees for services1 training1 background screenings1 or insurance2 7cc7 regular or necessary facilities maintenance and upkeep2 7dd7 supplies or materials that due to their nature are unusable at a future date and maintain only a nominal value2 7ee7 overhead expenses for events or programs cancelled due to ,,covid-#ai that are not reimbursable through insurance or other means1 such as nonreimbursable deposits and cancellation fees2 7ff7 rent 7including rent under a lease agreement72 7gg7 payments of interest or mandatory principal payment on any mortgage obligation 7which shall not include any prepayment of principal or interest on a mortgage obligation72 7hh7 utilities2 7ii7 interest or mandatory principal payment on any other debt obligations that were incurred before the covered period 7which shall not include any prepayment of principal or interest on a debt obligation72 7jj7 marketing2 7kk7 insurance2 or 7ll7 any other operational expenses1 including program fee refunds1 costs for referees or sports officials1 software and technology1 equipment1 and supplies or materials that due to their nature are unusable at a future date and maintain only a nominal value2 and 7,,ii7 does not include-- 7aa7 expenses permitted to be reimbursed under contract or otherwise reimbursable2 7bb7 expenses reimbursable under currently held insurance2 or 7cc7 any compensation of an employee whose principal place of residence is outside of the ,united ,states2 7xi7 the term youth sports provider-- 7,i7 means any entity or organization that has a primary purpose to provide direct sports programming or sports events to youth #ah and under1 including-- 7aa7 sports-based youth development organizations2 7bb7 interscholastic sports programs2 7cc7 youth sports providers such as coaches1 trainers1 and instructors2 and 7dd7 youth sport league1 camp1 or event providers2 and 7xii7 the term veterans organization means an organization that is described in section #eja7;c77#ai7 of the ,internal ,revenue ,code that is exempt from taxation under section #eja7;a7 of such code4 7,b7 ,covered loans 7i7 ,youth sports provider loans ,except as otherwise provided in this paragraph1 the ,administrator may guarantee covered loans under the same terms1 conditions1 and processes as a loan made under this subsection4 7ii7 ,delegated authority ,for purposes of making covered loans under this paragraph1 a lender approved to make loans under this subsection shall be deemed to have been delegated authority by the ,administrator to make and approve covered loans1 subject to the provisions of this paragraph4 7iii7 ,additional lenders ,the authority to make loans under this paragraph shall be extended to additional lenders determined by the ,administrator and the ,secretary of the ,treasury to have the necessary qualifications to process1 close1 disburse1 and service loans made with the guarantee of the ,administration4 7iv7 ,refinance ,a loan made under subsection 7b77#b7 during the period beginning on ,january #ca1 #bjbj1 and ending on the date on which covered loans are made available may be refinanced as part of a covered loan4 7v7 ,nonrecourse ,notwithstanding the waiver of the personal guarantee requirement or collateral under subparagraph 7,j71 the ,administrator shall have no recourse against any individual shareholder1 member1 or partner of an eligible recipient of a covered loan for nonpayment of any covered loan1 except to the extent that such shareholder1 member1 or partner uses the covered loan proceeds for a purpose not authorized under clause 7ii74 7,c7 ,registration of loans ,not later than #ae days after the date on which a loan is made under this paragraph1 the ,administration shall register the loan using the ,,tin 7as defined in section #ggja of the ,internal ,revenue ,code of #aihf7 assigned to the borrower4 7,d7 ,eligibility for certain small businesses and organizations 7i7 ,in general ,during the covered period1 any youth sports provider business concern1 nonprofit organization1 veterans organization1 or ,tribal business concern described in section #ca7;b77#b77;,c7 shall be eligible to receive a covered loan if the youth sports provider concern or organization employs not more than #ejj full-time employees4 ,an eligible recipient applying for a covered loan shall make a good faith certification-- 7,i7 that the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient2 7,,ii7 that the eligible recipient provides direct sports programming or sports events to youth #ah and under2 7,,iii7 that the eligible recipient does not have an application pending for a loan under this subsection for the same purpose and duplicative of amounts applied for or received under a covered loan2 and 7,,iv7 during the period beginning on ,february #ae1 #bjbj1 and ending on ,december #ca1 #bjbj1 that the eligible recipient has not received amounts under this subsection for the same purpose that when added to the applied for loan amount under this program will exceed #b million4 7ii7 ,inclusion of sole proprietors1 independent contractors1 and eligible self-employed individuals 7,i7 ,in general ,during the covered period1 individuals who operate under a sole proprietorship or as an independent contractor and eligible self-employed individuals shall be eligible to receive a covered loan4 7,,ii7 ,documentation ,an eligible self-employed individual1 independent contractor1 or sole proprietorship seeking a covered loan shall submit such documentation as is necessary to establish such individual as eligible1 including payroll tax filings reported to the ,internal ,revenue ,service1 ,forms #ajii-,,misc1 and income and expenses from the sole proprietorship1 as determined by the ,administrator and the ,secretary4 7iii7 ,payroll protection program eligibility ,no youth sports provider that received a covered loan under paragraph 7#cf7 shall be deemed ineligible for a covered loan under this paragraph4 7iv7 ,employee ,for purposes of determining whether a youth sports provider business concern1 nonprofit organization1 veterans organization1 or ,tribal business concern described in section #ca7;b77#b77;,c7 employs not more than #ejj employees under clause 7i77,i71 the term employee includes individuals employed on a full-time basis4 7v7 ,affiliation ,the provisions applicable to affiliations under section #aba4ajc of title #ac1 ,code of ,federal ,regulations1 or any successor thereto1 shall not apply with respect to a nonprofit organization and a veterans organization in the same manner as with respect to a small business concern4 7,e7 ,maximum loan amount 7i7 ,allocation ,during the covered period1 with respect to a covered loan1 the maximum loan amount shall not exceed #b1jjj1jjj and be the greater of-- 7,i7 gross receipts in #bjai2 or 7,,ii7 #he percent of regular operating expenses accrued since ,january #a1 #bjbj1 minus revenue generated over that period4 7ii7 ,disbursement ,priority consideration in the loan disbursement shall be given to nonprofits representing youth sports providers serving high priority areas4 ,this consideration may include designating a specific amount of the loan funding allocated to be used exclusively for nonprofit providers serving high priority areas4 7,f7 ,allowable uses of covered loans ,during the covered period1 an eligible recipient may use the proceeds of the covered loan for regular operating expenses4 7,g7 ,loan forgiveness 7i7 7,i7 ,forgiveness ,an eligible recipient shall be eligible for forgiveness of indebtedness on a covered loan in an amount equal to percentage forgiveness multiplied by the loan amount4 7,,ii7 ,eligible expenses ,up to #ej percent of forgiveness shall be granted for use for the eligible expenses enumerated above4 7,,iii7 ,additional forgiveness ,additional forgiveness of the remaining #ej percent shall be prorated based on the number of youth participants in the program participating in some capacity 7i4e4 virtual7 by ,december #bjba 7as compared to participation rates over a comparable period in #bjai74 ,criteria shall be developed to define this standard and take into account factors that would limit or reduce participation1 such as continuing ,,covid-#ai concerns4 7,,iv7 ,treatment of amounts forgiven 7aa7 ,in general ,amounts which have been forgiven under this section shall be considered cancelled indebtedness by a lender authorized under section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a774 7bb7 ,purchase of guarantees ,for purposes of the purchase of the guarantee for a covered loan by the ,administrator1 amounts which are forgiven under this section shall be treated in accordance with the procedures that are otherwise applicable to a loan guaranteed under section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a774 7cc7 ,remittance ,not later than #ij days after the date on which the amount of forgiveness under this section is determined1 the ,administrator shall remit to the lender an amount equal to the amount of forgiveness1 plus any interest accrued through the date of payment4 4 7c7 ,application ,an eligible recipient seeking loan forgiveness under this section shall submit to the lender that is servicing the covered loan an application1 which shall include-- 7#a7 documentation verifying youth under the age of #ah participation numbers during the forgiveness calculation periods2 7#b7 documentation showing expenditures of the covered loan on allowed uses2 7#c7 a certification from a representative of the eligible recipient authorized to make such certifications that-- 7,a7 the documentation presented is true and correct2 and 7,b7 the amount for which forgiveness is requested was used to provide sports programing and sports events for youth under the age of #ah2 and 7#d7 any other documentation the ,administrator determines necessary4 7d7 ,prohibition on forgiveness without documentation ,no eligible recipient shall receive forgiveness under this section without submitting1 to the lender that is servicing the covered loan1 the documentation required under subsection 7f74 7e7 ,decision ,not later than #fj days after the date on which a lender receives an application for loan forgiveness under this section from an eligible recipient1 the lender shall issue a decision on the application4 7f7 ,hold harmless ,if a lender has received the documentation required under this section from an eligible recipient attesting that the eligible recipient has accurately verified the payments for payroll costs1 payments on covered mortgage obligations1 payments on covered lease obligations1 or covered utility payments during covered period-- 7#a7 an enforcement action may not be taken against the lender under section #dg7;e7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fegt7e77 relating to loan forgiveness for the payments for payroll costs1 payments on covered mortgage obligations1 payments on covered lease obligations1 or covered utility payments1 as the case may be2 and 7#b7 the lender shall not be subject to any penalties by the ,administrator relating to loan forgiveness for the payments for payroll costs1 payments on covered mortgage obligations1 payments on covered lease obligations1 or covered utility payments1 as the case may be4 7g7 ,taxability ,for purposes of the ,internal ,revenue ,code of #aihf1 any amount which 7but for this subsection7 would be includible in gross income of the eligible recipient by reason of forgiveness described in subsection 7b7 shall be excluded from gross income4 7h7 ,rule of construction ,the cancellation of indebtedness on a covered loan under this section shall not otherwise modify the terms and conditions of the covered loan4 7i7 ,regulations ,not later than #cj days after the date of enactment of this ,act1 the ,administrator shall issue guidance and regulations implementing this section4 7j7 ,direct appropriations ,there is appropriated1 out of amounts in the ,treasury not otherwise appropriated1 for the fiscal year ending ,september #cj1 #bjbj1 to remain available until ,september #cj1 #bjba1 for additional amounts #h1ejj1jjj1jjj under the heading ,small ,business ,administration--,business ,loans ,program ,account1 ,,cares ,act for the cost of guaranteed loans as authorized under paragraph 7#cg7 of section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a771 as added by section #e of this ,act4 7k7 ,emergency rulemaking authority ,not later than #ae days after the date of enactment of this ,act1 the ,administrator shall issue regulations to carry out this title and the amendments made by this title without regard to the notice requirements under section #eec7;b7 of title #e1 ,united ,states ,code4 7l7 ,loan education 7#a7 ,the ,,sba shall have authority to provide additional financial awards to resource partners 7,small ,business ,development ,centers1 ,women's ,business ,centers7 to provide counseling1 training1 and education to youth sports providers on use of loans4 7#b7 ,the ,,sba or ,treasury shall provide nonprofits representing youth sports providers serving high priority areas with grants to establish a training program on accessing resources under the program1 and general financial management4 7m7 ,fee waiver ,during the covered period1 with respect to a covered loan-- 7#a7 in lieu of the fee otherwise applicable under paragraph 7#bc77;,a71 the ,administrator shall collect no fee2 and 7#b7 in lieu of the fee otherwise applicable under paragraph 7#ah77;,a71 the ,administrator shall collect no fee4 7n7 ,interest rate requirements ,a covered loan shall bear an interest rate-- 7#a7 for the first two years1 and shall be no greater than #d percent2 7#b7 for years #c through #g1 and shall have ,applicable ,federal ,rate 7,,afr7 plus #bej-dej base points 7bps7 as determined by the ,administrator based on revenue decline4 7o7 ,loan deferment 7#a7 ,definition of impacted borrower ,in this section1 the term impacted borrower means an eligible recipient that-- 7,a7 is in operation on ,february #ae1 #bjbj2 and 7,b7 has an application for a covered loan that is approved or pending approval on or after the date of enactment of this section4 7#b7 ,presumption ,for purposes of this subsection1 an impacted borrower is presumed to have been adversely impacted by ,,covid-#ai4