The PAR Act (Parity for Athletic Recreation Act) proposes to amend the Internal Revenue Code to remove a prohibition on using proceeds from certain tax-exempt bond issuances to fund private or commercial golf courses and country clubs. In other words, it wipes out the current restriction that previously barred tax-exempt bond proceeds from financing these private athletic facilities. The change would apply to obligations issued after enactment. The bill also includes transitional rules linking the repeal to specific empowerment zone and opportunity zone provisions, so the amendment would apply to certain employment or taxable-year timelines that begin after enactment. The overall aim, as suggested by the title, is to create “parity” in the treatment of athletic recreation facilities by allowing financing for private golf courses and country clubs that previously could not use such bond proceeds.
Key Points
- 1Repeals the restriction in Section 144 of the Internal Revenue Code that bars the use of certain tax-exempt bond proceeds for private or commercial golf courses and country clubs.
- 2The repeal applies to obligations issued after the date of enactment.
- 3Special rule: the empowerment zone employment credit provisions (section 1396(d)(2)) are to apply to individuals who begin work for the employer after enactment.
- 4Special rule: the empowerment zone and opportunity zone provisions (sections 1397C(d)(5) and 1400Z-2(d)(3)(A)) apply to taxable years beginning after enactment.
- 5Overall effect: expands the uses of tax-exempt bond proceeds, potentially encouraging private golf courses and country clubs to seek tax-exempt financing; subject to other existing tax and financing rules and oversight.