I 

111TH CONGRESS 

1ST SESSION H. R. 2106 

To amend the Internal Revenue Code of 1986 to expand workplace health 

incentives by equalizing the tax consequences of employee athletic facility 

use. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 27, 2009 

Mr. KIND (for himself and Mr. WAMP) introduced the following bill; which was 

referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to expand 

workplace health incentives by equalizing the tax consequences of employee athletic facility use. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Workforce Health Im5 provement Program Act of 2009’’. 

6 SEC. 2. EMPLOYER-PROVIDED OFF-PREMISES HEALTH 

7 CLUB SERVICES. 

8 (a) TREATMENT AS FRINGE BENEFIT.—Subpara9 graph (A) of section 132(j)(4) of the Internal Revenue 


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1 Code of 1986 (relating to on-premises gyms and other ath2 letic facilities) is amended to read as follows: 

3 ‘‘(A) IN GENERAL.—Gross income shall 

4 not include— 

5 ‘‘(i) the value of any on-premises ath6 letic facility provided by an employer to the 

7 employer’s employees, and 

8 ‘‘(ii) so much of the fees, dues, or 

9 membership expenses paid by an employer 

10 to an athletic or fitness facility described 

11 in subparagraph (C) on behalf of the em12 ployer’s employees as does not exceed $900 

13 per employer per year.’’. 

14 (b) ATHLETIC FACILITIES DESCRIBED.—Paragraph 

15 (4) of section 132(j) of such Code is amended by adding 

16 at the end the following new subparagraph: 

17 ‘‘(C) CERTAIN ATHLETIC OR FITNESS FA18 CILITIES DESCRIBED.—For purposes of sub19 paragraph (A)(ii), an athletic or fitness facility 

20 described in this subparagraph is a facility— 

21 ‘‘(i) providing instruction in a pro22 gram of physical exercise, offering facilities 

23 for the preservation, maintenance, encour24 agement, or development of physical fitVerDate Nov 24 2008 23:10 Apr 28, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2106.IH H2106

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1 ness, or serving as the site of such a pro2 gram of a State or local government, 

3 ‘‘(ii) which is not a private club owned 

4 and operated by its members, 

5 ‘‘(iii) which does not offer golf, hunt6 ing, sailing, or riding facilities, 

7 ‘‘(iv) whose health or fitness facility is 

8 not incidental to its overall function and 

9 purpose, and 

10 ‘‘(v) which is fully compliant with the 

11 State of jurisdiction and Federal anti-dis12 crimination laws.’’. 

13 (c) EXCLUSION APPLIES TO HIGHLY COMPENSATED

14 EMPLOYEES ONLY IF NO DISCRIMINATION.—Paragraph 

15 (1) of section 132(j) of such Code is amended— 

16 (1) by striking ‘‘Paragraphs (1) and (2) of sub17 section (a)’’ and inserting ‘‘Paragraphs (1) and (2) 

18 of subsection (a) and paragraph (4) of this sub19 section’’, and 

20 (2) in the heading by striking ‘‘EXCLUSIONS

21 UNDER SUBSECTION (A)(1) AND (2)’’ and inserting 

22 ‘‘CERTAIN EXCLUSIONS’’. 

23 (d) EMPLOYER DEDUCTION FOR DUES TO CERTAIN

24 ATHLETIC FACILITIES.— 


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1 (1) IN GENERAL.—Paragraph (3) of section 

2 274(a) of such Code (relating to denial of deduction 

3 for club dues) is amended by adding at the end the 

4 following new sentence: ‘‘The preceding sentence 

5 shall not apply to so much of the fees, dues, or 

6 membership expenses paid to athletic or fitness fa7 cilities (within the meaning of section 132(j)(4)(C)) 

8 as does not exceed $900 per employee per year.’’. 

9 (2) CONFORMING AMENDMENT.—Section 

10 274(e)(4) of such Code is amended by inserting ‘‘the 

11 first sentence of’’ before ‘‘subsection (a)(3)’’. 

12 (e) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 the date of the enactment of this Act. 

Æ 


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