Overview
Title
To amend the Internal Revenue Code of 1986 to remove private or commercial golf courses and country clubs from the list of uses for which certain proceeds cannot be used.
ELI5 AI
H.R. 1583 is a bill that wants to let golf courses and country clubs use some special kinds of money that usually only help public projects, which might be unfair because golf places are mostly for richer people.
Summary AI
H.R. 1583 seeks to change the rules about how certain funds can be used according to the Internal Revenue Code. Specifically, it aims to remove private or commercial golf courses and country clubs from the list of places where these proceeds cannot be used. This change affects various tax provisions linked to obligations and credit incentives, notably for empowerment and opportunity zones. The proposed amendment would apply to fiscal matters happening after the law is enacted.
Published
Keywords AI
Sources
Bill Statistics
Size
Language
Complexity
AnalysisAI
General Summary of the Bill
H.R. 1583, known as the "Parity for Athletic Recreation Act" or the "PAR Act," proposes changes to the Internal Revenue Code of 1986. Specifically, it seeks to remove prohibitions that currently exist on using certain tax-exempt bond proceeds for the development and improvement of private or commercial golf courses and country clubs. This proposed legislative change is aimed at allowing these facilities to benefit from potential tax incentives that are presently unavailable to them due to these restrictions.
Summary of Significant Issues
One of the primary concerns with this bill is that it could reallocate financial advantages towards facilities such as private or commercial golf courses and country clubs, which often serve an affluent clientele. The ability to access tax-exempt bonds could reduce their financing costs, creating an environment where public resources indirectly subsidize private leisure spaces. This may raise issues around fairness and equitable use of tax benefits.
Another issue is the bill's use of specialized tax code sections without thorough context, potentially obscuring comprehension for individuals or businesses that do not specialize in tax law. This could complicate or deter effective utilization of the provisions for those less familiar with legal frameworks, such as smaller businesses or taxpayers looking for transparency within tax regulations.
Impact on the General Public
Broadly, the impact of this bill hinges on the public's interest in how tax-exempt funding is used. There might be concern regarding whether these changes truly serve public benefit or if they merely advantage select private enterprises. While this could support economic activity related to maintenance and development of such facilities, there might be a sentiment that public monies should prioritize broader societal benefits.
Impact on Specific Stakeholders
The bill provides distinct advantages to private or commercial golf courses and country clubs by potentially lowering their cost of financing. This could enable these businesses to expand facilities, enhance amenities, or lower operating costs. On the other hand, this bill might not be well-received by those advocating for equitable distribution of tax benefits, particularly given that these venues typically serve more privileged sectors of society.
In local economies where golf clubs and country clubs are significant employers, this bill might be seen positively due to the potential for job creation and community economic benefits. However, there is a risk of it being perceived as reinforcing existing inequalities unless accompanied by policies that ensure broader accessibility and benefit-sharing.
Overall, the bill stirs thoughtful discussions about the appropriate application of tax credits and incentives, balancing necessary private sector support with the imperative to serve public and equitable interests.
Issues
The repeal of restrictions on the use of tax-exempt bond proceeds for private or commercial golf courses and country clubs (Section 2) could lead to wasteful spending, as it allows these facilities, which often serve wealthier populations, to access cheaper financing at the expense of broader public interest priorities.
The language in Section 2(b)(1) 'the amendment made by this section shall apply to obligations issued after the date of the enactment of this Act' is vague and lacks specificity regarding the obligations it covers, which might result in different interpretations and inconsistent application.
The amendment may disproportionately benefit private or commercial golf courses and country clubs (Section 2) by granting them access to potentially cheaper financing, raising concerns about equity and fairness given the exclusive nature of these facilities.
The bill employs specific sections of the Internal Revenue Code without providing context or explanation for the lay audience or smaller businesses, particularly in Section 2(b) regarding tax incentives and credits. This complexity may make the bill difficult to understand and navigate for those not familiar with the Code.
The provision in Section 2(b)(2) regarding a 'SPECIAL RULE FOR EMPOWERMENT ZONE EMPLOYMENT CREDIT' introduces additional complexity that may be challenging for smaller businesses or those unfamiliar with tax law, warranting the need for better explanation or examples to ensure comprehension.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of this act states that it can be officially referred to as the “Parity for Athletic Recreation Act” or the “PAR Act.”
2. Repeal of restrictions on use of certain proceeds for private or commercial golf courses and country clubs Read Opens in new tab
Summary AI
The section removes restrictions on using funds for private or commercial golf courses and country clubs by changing the tax code. The changes apply to certain tax obligations and employment credits from the day the law is enacted.