PLAY Act of 2023

HR 5238 (PLAY Act of 2023) expands the child and dependent care tax credit to cover expenses for youth physical activities (e.g., fitness memberships, activity fees, and equipment) for dependents aged 4-18, with a $1,000 annual limit per taxpayer (or $2,000 for joint returns). It also increases the annual limit for employer-sponsored dependent care flexible spending arrangements from $10,000 to $12,000 for single parents. The bill creates a new $100 million HHS grant program (2024-2025) to fund recreational youth sports programs that reduce family costs, promote physical activity, and avoid competitive/elite sports or facility construction. These provisions directly affect families with children participating in non-competitive physical activities and eligible organizations like local governments or nonprofits.