,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #figi  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,janu>y #h1 #bjbf,mr4 
,got!im] 7= himself & ,mr4 ,lawl]7      
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means1 & 9    
addition to ! ,committees on ,education 
& ,work=ce1 & ,en]gy & ,comm]ce1 = a    
p]iod to be subsequ5tly det]m9$ by !    
,speak]1 9 ea* case = consid]ation ( su*
 provisions z fall )9 ! jurisdiction ( !
 committee conc]n$  ,a ,,bill  ,to am5d 
! ,int]nal ,rev5ue ,code ( #aihf to     
provide = y\? sports1 to e/abli% a grant
 program = recreational y\? sports1 & = 
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,promot+ ,lifelong     
,activity = ,y\? ,act ( #bjbf or !      
,,play ,act ( #bjbf4  #b4 ,modification 
( *ild & dep5d5t c>e tax cr$it  7a7     
,all[ance ( exp5ses = y\? physical      
activities ,section #ba7;b77#b77;,a7 ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by /rik+ & at ! end ( clause 7i71 by   
/rik+ ! p]iod at ! end ( clause 7ii7 &  

ins]t+ 1 &1 & by ins]t+ aft] clause 7ii7
 ! foll[+3  7iii7 exp5ses = y\? physical
 activities 7)9 ! mean+ ( section       
#bac7;d77#ab774  4  7b7 ,exception to   
camp rule ,section #ba7;b77#b77;,a7 (   
su* ,code 7z am5d$ by subsection 7a77 is
 am5d$ by /rik+ ,su* t]m & ins]t+       
,except 9 ! case ( exp5ses describ$ 9   
clause 7iii71 su* t]m4  7c7 ,doll>      
limitations ,section #ba7;c7 ( su* ,code
 is am5d$ to read z foll[s3  7c7 ,doll> 
limit on am\nt cr$itable  7#a7 ,9 g5]al 
,! am\nt ( ! employm5t-relat$ exp5ses   
incurr$ dur+ any taxable ye> :i* may be 
tak5 into acc\nt "u subsection 7a7 %all 
n exce$-- 7,a7 if !re is #a qualify+    
individual ) respect to ! taxpay] = su* 
taxable ye>1 #d1jjj1 or  7,b7 if !re are
 #b or m qualify+ individuals ) respect 
to ! taxpay] = su* taxable ye>1 #g1jjj4 
7#b7 ,r$uction ,! am\nt det]m9$ "u      
p>agraph 7#a7 %all be r$uc$ by !        
aggregate am\nt excludable f gross      
income "u section #abi = ! taxable ye>4 
4  7d7 ,effective date ,! am5dm5ts made 

by ?is section %all apply to taxable    
ye>s beg9n+ aft] ,decemb] #ca1 #bjbe4   
#c4 ,increase 9 doll> am\nt ( election =
 dep5d5t c>e flexible sp5d+ arrangem5ts 
7a7 ,9 g5]al ,section #abe ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by       
r$esignat+ subsections 7k7 & 7l7 z      
subsections 7l7 & 7m7 & ins]t+ aft]     
subsection 7j7 ! foll[+3  7k7           
,limitation on dep5d5t c>e flexible     
sp5d+ arrangem5ts  7#a7 ,9 g5]al ,=     
purposes ( ?is section1 if a b5efit is  
provid$ "u a cafet]ia plan ?r\gh employ]
 contributions to a dep5d5t c>e flexible
 sp5d+ arrangem5t1 su* b5efit %all n be 
treat$ z a qualifi$ b5efit unless !     
cafet]ia plan provides t an employee may
 n elect = any taxable ye> to h sal>y   
r$uction contributions 9 excess (       
#aj1jjj made to su* arrangem5t = ea*    
dep5d5t "u su* arrangem5t4  7#b7 ,s+le  
p>5t ,9 ! case t ! employee is an       
individual :o is n m>ri$ z ( ! beg9n+ ( 
! taxable ye> = :i* ! employee elects to
 p>ticipate 9 ! arrangem5t1 p>agraph    

7#a7 %all be appli$ by sub/itut+ #ab1jjj
 = #aj1jjj4  4  7b7 ,effective date ,!  
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjbe4  #d4 ,y\? physical          
activities  7a7 ,9 g5]al ,p>agraph 7#a7 
( section #bac7;d7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by /rik+ or at ! 
end ( subp>agraph 7,c71 by /rik+ ! p]iod
 at ! end ( subp>agraph 7,d7 & ins]t+ 1 
or1 & by ins]t+ aft] subp>agraph 7,d7 ! 
foll[+ new subp>agraph3  7,e7 = y\?     
physical activities4  4  7b7 ,y\?       
physical activities ,subsection 7d7 (   
section #bac ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by add+ at ! end !     
foll[+ new p>agraph3  7#ab7 ,y\?        
physical activities  7,a7 ,9 g5]al ,!   
t]m y\? physical activities means       
regi/ration co/s1 fees1 & exp5ses       
associat$ ) ! p>ticipation by dep5d5ts (
 ! taxpay] 7z def9$ 9 section #aeb7 :o h
 atta9$ age #d b n age #ah 9 ! foll[+3  
7i7 ,memb]%ip at a fitness facility4    
7ii7 ,p>ticipation or in/ruction 9      

physical ex]cise or physical activity4  
7iii7 ,equipm5t us$ 9 a program 7includ+
 a self-direct$ program7 ( physical     
ex]cise or physical activity4  7,b7     
,ov]all doll> limitation ,! aggregate   
am\nt treat$ z y\? physical activities )
 respect to any taxpay] = any taxable   
ye> %all n exce$ #a1jjj 7#b1jjj 9 ! case
 ( a jo9t return or a head ( h\sehold 7z
 def9$ 9 section #b7;b7774  7,c7        
,fitness facility ,= purposes (         
subp>agraph 7,a77i71 ! t]m fitness      
facility means a facility-- 7i7 :i*     
provides in/ruction 9 a program (       
physical ex]cise1 (f]s facilities = !   
pres]vation1 ma9t5ance1 enc\ragem5t1 or 
developm5t ( physical fitness1 or s]ves 
z ! site ( su* a program ( a ,/ate or   
local gov]nm5t1  7ii7 :i* is n a private
 club own$ & op]at$ by its memb]s1      
7iii7 :i* does n (f] golf1 hunt+1 sail+1
 or rid+ facilities1  7iv7 ! heal? or   
fitness compon5t ( :i* is n incid5tal to
 its ov]all function & purpose1 &  7v7  
:i* is fully compliant ) ! ,/ate (      

jurisdiction & ,f$]al anti-discrim9ation
 laws4  7,d7 ,treatm5t ( ex]cise videos1
 etc ,videos1 books1 & simil> mat]ials  
%all be treat$ z describ$ 9 subp>agraph 
7,a77ii7 if ! cont5t ( su* mat]ials     
con/itutes in/ruction 9 a program (     
physical ex]cise or physical activity4  
7,e7 ,limitations  7i7 ,use ( funds     
,am\nts paid = co/s1 fees1 or exp5ses   
describ$ 9 subp>agraph 7,a77ii7 %all be 
treat$ z paid = y\? physical activities 
only if su* am\nts are n paid =-- 7,i7  
t\rnam5t entries1 or  7,,ii7 private    
lessons1 tra9+1 or camps4  7ii7 ,sports 
& fitness equipm5t ,am\nts paid =       
equipm5t describ$ 9 subp>agraph         
7,a77iii7 %all be treat$ z paid = y\?   
physical activities only-- 7,i7 if su*  
equipm5t is us$ exclusively =           
p>ticipation 9 fitness1 ex]cise1 sport1 
or o!r physical activity1  7,,ii7 9 !   
case ( am\nts paid = app>el or footwe>1 
if su* app>el or footwe> is ( a type t  
is necess>y =1 & is n us$ = any purpose 
o!r ?an1 a specific physical activity1 &

  7,,iii7 9 ! case ( am\nts paid = any  
s+le item ( sports equipm5t 7o!r ?an    
ex]cise equipm5t71 to ! ext5t su* am\nts
 d n exce$ #bej4  7,f7 ,programs :i*    
include compon5ts o!r ?an physical      
ex]cise & physical activity ,rules      
simil> to ! rules ( p>agraph 7#f7 %all  
apply 9 ! case ( any program t includes 
physical ex]cise or physical activity & 
also o!r compon5ts4 ,= purposes ( !     
prec$+ s5t5ce1 travel & accommodations  
%all be treat$ z a sep>ate compon5t4  4 
7c7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ,decemb] #ca1 #bjbe4  #e4   
,recreational y\? sports ,,hhs grant    
program  7a7 ,e/abli%m5t ,n lat] ?an #a 
ye> aft] ! date ( enactm5t ( ?is ,act1 !
 ,secret>y ( ,heal? & ,human ,s]vices 79
 ?is section ref]r$ to z ! ,secret>y7   
%all e/abli% a program to aw>d grants1  
on a competitive basis1 to eligible     
entities = ! purposes ( exp&+ access to1
 & increas+ ! p>ticipation capacity (1  
recreational y\? sports-- 7#a7 to       

decrease ! co/s ( su* p>ticipation =    
families2 &  7#b7 to promote heal?y     
habits1 physical activity1 &            
socialization4  7b7 ,applications ,to be
 eligible = a grant "u ?is section1 an  
entity %all submit to ! ,secret>y an    
application at su* "t1 9 su* mann]1 &   
conta9+ su* in=mation z ! ,secret>y     
det]m9es is appropriate1 :i* %all       
include an atte/ation t ! entity w use !
 grant only = ! purposes describ$ 9     
subsection 7a74  7c7 ,use ( funds  7#a7 
,9 g5]al ,a grant aw>d$ "u ?is section  
may n be us$-- 7,a7 to con/ruct or      
upgrade a facility2 or  7,b7 to fund a  
compon5t ( a sports program t is        
competitive1 elite1 or selective        
7includ+ su* a compon5t t involves      
travel74  7#b7 ,rule ( con/ruction ,= ! 
purposes ( p>agraph 7#a71 a compon5t ( a
 sports program %all n be con/ru$ z     
competitive1 elite1 or selective solely 
because su* compon5t includes games or  
mat*es 9 :i* a score is kept4  7#c7     
,supplem5t1 n supplant  7,a7 ,9 g5]al   

,subject to subp>agraph 7,b71 a grant   
aw>d$ "u ?is section %all be us$ to     
supplem5t1 n supplant1 funds f o!r      
s\rces4  7,b7 ,exception ,a grant aw>d$ 
"u ?is section may be us$ to supplant   
funds f o!r s\rces to remove fees =     
families = ! purpose ( exp&+ access to  
recreational y\? sports4  7d7 ,grant    
p]iod ,a grant aw>d$ "u ?is section %all
 be = a p]iod ( #b ye>s4  7e7 ,am\nt ,a 
grant aw>d$ "u ?is section %all be = an 
am\nt-- 7#a7 n less ?an #e1jjj2 &  7#b7 
n m ?an #ej1jjj4  7f7 ,report ,n lat]   
?an #c ye>s aft] ! date ( enactm5t ( ?is
 ,act1 ! ,secret>y %all submit to       
,congress a report conta9+ an assessm5t 
( h[ grants aw>d$ "u ?is section        
fulfill$ ! purposes describ$ 9          
subsection 7a74  7g7 ,def9itions ,9 ?is 
section3 7#a7 ,eligible entity ,! t]m   
eligible entity-- 7,a7 means-- 7i7 a    
local gov]nm5t2  7ii7 a nonpr(it        
organization2  7iii7 a ,tribal          
organization2 &  7iv7 a vet]ans         
organization2 &  7,b7 does n include any

 entity or organization (-- 7i7 an      
elem5t>y s*ool1 a second>y s*ool1 or a  
local educational ag5cy 7z su* t]ms are 
def9$ 9 section #haja ( ! ,elem5t>y &   
,second>y ,education ,act ( #aife 7#bj  
,u4,s4,c4 #ghja772 or  7ii7 an          
in/itution ( high] education 7z def9$ 9 
section #aja ( ! ,high] ,education ,act 
( #aife 7#bj ,u4,s4,c4 #ajja774  7#b7   
,nonpr(it organization ,! t]m nonpr(it  
organization means an organization t is 
describ$ 9 section #eja7;c77#c7 ( !     
,int]nal ,rev5ue ,code ( #aihf & t is   
exempt f taxation "u section #eja7;a7 ( 
su* ,code4  7#c7 ,tribal organization ,!
 t]m ,tribal organization has ! mean+   
giv5 ! t]m 9 section #d ( ! ,indian     
,self-,det]m9ation & ,education         
,assi/ance ,act 7#be ,u4,s4,c4 #ecjd74  
7#d7 ,vet]ans organization ,! t]m       
vet]ans organization means an           
organization t is describ$ 9 section    
#eja7;c77#ai7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf & t is exempt f taxation "u    
section #eja7;a7 ( su* ,code4  7h7      

,au?orization ( appropriations ,!re is  
au?oriz$ to be appropriat$ to c>ry out  
?is section #bjj1jjj1jjj = ! p]iod (    
fiscal ye>s #bjbf ?r\gh #bjcj4