PHIT Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 3109 To amend the Internal Revenue Code of 1986 to treat certain amounts paid for physical activity, fitness, and exercise as amounts paid for medical care. IN THE HOUSE OF REPRESENTATIVES MAY 11, 2021 Mr. KIND (for himself, Mr. KELLY of Pennsylvania, Ms. SEWELL, and Mr. LAHOOD) introduced the following bill; which was referred to the Com- mittee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to treat cer- tain amounts paid for physical activity, fitness, and exer- cise as amounts paid for medical care. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Personal Health In- 4 vestment Today Act of 2021’’ or the ‘‘PHIT Act of 2021’’. 5 SEC. 2. PURPOSE. 6 The purpose of this Act is to promote health and pre- 7 vent disease, particularly diseases related to being over- 8 weight or obese, by— 9 VerDate Sep 11 2014 23:53 Jun 10, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3109.IH H3109 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3109 IH (1) encouraging healthier lifestyles; 1 (2) providing financial incentives to ease the fi- 2 nancial burden of engaging in healthy behavior; and 3 (3) increasing the ability of individuals and 4 families to participate in physical fitness activities. 5 SEC. 3. CERTAIN AMOUNTS PAID FOR PHYSICAL ACTIVITY, 6 FITNESS, AND EXERCISE TREATED AS 7 AMOUNTS PAID FOR MEDICAL CARE. 8 (a) IN GENERAL.—Paragraph (1) of section 213(d) 9 of the Internal Revenue Code of 1986 is amended by strik- 10 ing ‘‘or’’ at the end of subparagraph (C), by striking the 11 period at the end of subparagraph (D) and inserting ‘‘, 12 or’’, and by inserting after subparagraph (D) the following 13 new subparagraph: 14 ‘‘(E) for qualified sports and fitness ex- 15 penses.’’. 16 (b) QUALIFIED SPORTS AND FITNESS EXPENSES.— 17 Subsection (d) of section 213 of the Internal Revenue 18 Code of 1986 is amended by adding at the end the fol- 19 lowing new paragraph: 20 ‘‘(12) QUALIFIED SPORTS AND FITNESS EX- 21 PENSES.— 22 ‘‘(A) IN GENERAL.—The term ‘qualified 23 sports and fitness expenses’ means amounts 24 VerDate Sep 11 2014 23:53 Jun 10, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3109.IH H3109 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3109 IH paid exclusively for the sole purpose of partici- 1 pating in a physical activity including— 2 ‘‘(i) for membership at a fitness facil- 3 ity, 4 ‘‘(ii) for participation or instruction in 5 physical exercise or physical activity, or 6 ‘‘(iii) for equipment used in a pro- 7 gram (including a self-directed program) of 8 physical exercise or physical activity. 9 ‘‘(B) OVERALL DOLLAR LIMITATION.—The 10 aggregate amount treated as qualified sports 11 and fitness expenses with respect to any tax- 12 payer for any taxable year shall not exceed 13 $1,000 ($2,000 in the case of a joint return or 14 a head of household (as defined in section 15 2(b))). 16 ‘‘(C) FITNESS FACILITY.—For purposes of 17 subparagraph (A)(i), the term ‘fitness facility’ 18 means a facility— 19 ‘‘(i) which provides instruction in a 20 program of physical exercise, offers facili- 21 ties for the preservation, maintenance, en- 22 couragement, or development of physical 23 fitness, or serves as the site of such a pro- 24 gram of a State or local government, 25 VerDate Sep 11 2014 23:53 Jun 10, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3109.IH H3109 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3109 IH ‘‘(ii) which is not a private club owned 1 and operated by its members, 2 ‘‘(iii) which does not offer golf, hunt- 3 ing, sailing, or riding facilities, 4 ‘‘(iv) the health or fitness component 5 of which is not incidental to its overall 6 function and purpose, and 7 ‘‘(v) which is fully compliant with the 8 State of jurisdiction and Federal anti-dis- 9 crimination laws. 10 ‘‘(D) TREATMENT OF EXERCISE VIDEOS, 11 ETC.—Videos, books, and similar materials 12 shall be treated as described in subparagraph 13 (A)(ii) if the content of such materials con- 14 stitutes instruction in a program of physical ex- 15 ercise or physical activity. 16 ‘‘(E) LIMITATIONS RELATED TO SPORTS 17 AND FITNESS EQUIPMENT.—Amounts paid for 18 equipment described in subparagraph (A)(iii) 19 shall be treated as qualified sports and fitness 20 expenses only— 21 ‘‘(i) if such equipment is utilized ex- 22 clusively for participation in fitness, exer- 23 cise, sport, or other physical activity, 24 VerDate Sep 11 2014 23:53 Jun 10, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3109.IH H3109 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 3109 IH ‘‘(ii) in the case of amounts paid for 1 apparel or footwear, if such apparel or 2 footwear is of a type that is necessary for, 3 and is not used for any purpose other 4 than, a specific physical activity, and 5 ‘‘(iii) in the case of amounts paid for 6 any single item of sports equipment (other 7 than exercise equipment), to the extent 8 such amounts do not exceed $250. 9 ‘‘(F) PROGRAMS WHICH INCLUDE COMPO- 10 NENTS OTHER THAN PHYSICAL EXERCISE AND 11 PHYSICAL ACTIVITY.—Rules similar to the rules 12 of paragraph (6) shall apply in the case of any 13 program that includes physical exercise or phys- 14 ical activity and also other components. For 15 purposes of the preceding sentence, travel and 16 accommodations shall be treated as a separate 17 component.’’. 18 (c) EFFECTIVE DATE.—The amendments made by 19 this section shall apply to taxable years beginning after 20 the date of the enactment of this Act. 21 Æ VerDate Sep 11 2014 23:53 Jun 10, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H3109.IH H3109 kjohnson on DSK79L0C42PROD with BILLS