PAR Act

Bill Number

H.R. 1583

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-02-25: Referred to the House Committee on Ways and Means.

Last Updated

2026-07-07T08:05:44Z

AI-Generated Summary

Purpose

The Parity for Athletic Recreation Act (PAR Act), H.R. 1583, aims to promote equal treatment for athletic and recreational facilities by allowing the use of certain tax-exempt financing proceeds for private or commercial golf courses and country clubs. This removes prior restrictions that treated these facilities differently from other recreational uses.

Key Provisions

• Amendment to Tax Code: The bill modifies Section 144 of the Internal Revenue Code of 1986 by deleting the phrase "private or commercial golf course, country club" wherever it appears. This eliminates a ban on using proceeds from qualified tax-exempt obligations (bonds issued by state or local governments for public benefit projects) for these specific facilities.
• Effective Dates:
• Applies to obligations (bonds) issued after the date of enactment.
• For empowerment zone employment credits (tax incentives for hiring in designated economically distressed areas), it applies to individuals starting work after enactment.
• For empowerment zone businesses and opportunity zones (programs providing tax benefits to encourage investment in low-income or rural areas), it applies to taxable years beginning after enactment.

Significant Changes to Existing Law

• Previously, Section 144 prohibited the use of proceeds from certain tax-exempt governmental bonds for constructing, improving, or financing private golf courses and country clubs, viewing them as non-essential or private luxuries.
• This bill removes that prohibition, aligning golf courses and country clubs with other allowed recreational uses (e.g., parks or sports facilities) under tax-exempt financing rules. It does not alter other eligibility requirements for these bonds, such as public benefit standards.

Potential Impacts

• On Government Agencies: The U.S. Department of the Treasury and Internal Revenue Service (IRS) may see increased issuance of tax-exempt bonds for these projects, potentially reducing federal tax revenue (as bond interest is exempt from federal income tax). State and local governments could issue more such bonds to support recreational development.
• On Citizens: Could lower financing costs for golf courses and country clubs, potentially reducing membership fees or improving facilities, benefiting users of these recreational amenities. However, it might indirectly increase the tax burden on all taxpayers due to forgone federal revenue.
• On International Relations: No direct impact, as this is a domestic tax policy change focused on U.S. internal revenue and local development.

Main Stakeholders Affected

• Owners and Operators: Private golf course and country club owners, who gain access to lower-cost tax-exempt financing.
• Local Governments: Municipalities and states issuing bonds, enabling them to fund or support these projects as economic or community development initiatives.
• Investors and Taxpayers: Bond buyers (often investors seeking tax-free income) and general U.S. taxpayers, who may face subtle revenue shifts.
• Communities in Special Zones: Businesses and workers in empowerment or opportunity zones, where the change could expand eligible projects and tax incentives.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens the framework for tax-exempt bonds under the Internal Revenue Code by broadening allowable uses, but maintains oversight to ensure bonds still serve a public purpose (e.g., job creation or community benefits). No challenges to bond validity are anticipated, as the change is narrowly targeted.
• Constitutional: Aligns with Congress's broad authority under the 16th Amendment to regulate taxation and spending; no apparent free speech, equal protection, or federalism issues.
• Political: Could spark debate on equity in tax policy—favoring upscale recreation like golf over other needs (e.g., affordable housing)—and may influence lobbying by recreational industries. As a bipartisan bill (introduced by Republicans with cross-party support), it reflects efforts to support rural and suburban economic activities without major controversy.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Tenney, Claudia [R-NY-24]

Cosponsors (16)

Rep. Panetta, Jimmy [D-CA-19], Rep. Hudson, Richard [R-NC-9], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Carter, Earl L. "Buddy" [R-GA-1], Rep. Harris, Andy [R-MD-1], Rep. Hamadeh, Abraham J. [R-AZ-8], Rep. Bishop, Sanford D. [D-GA-2], Rep. Bergman, Jack [R-MI-1], Rep. Moore, Blake D. [R-UT-1], Rep. Murphy, Gregory F. [R-NC-3], Rep. Carey, Mike [R-OH-15], Rep. Alford, Mark [R-MO-4], Rep. Franklin, Scott [R-FL-18], Rep. Yakym, Rudy [R-IN-2], Rep. Owens, Burgess [R-UT-4], Rep. Ciscomani, Juan [R-AZ-6]

Recent Actions

• 2025-02-25: Referred to the House Committee on Ways and Means.
• 2025-02-25: Introduced in House
• 2025-02-25: Introduced in House

Bill Versions

• Parity for Athletic Recreation Act — issued 2025-02-25 — PDF (2 pages)