I 

109TH CONGRESS 

1ST SESSION H. R. 1634

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 14, 2005

Mr. WAMP (for himself, Mr. UDALL of Colorado, Mr. BOEHLERT, Mr. MORAN

of Virginia, Mr. MCGOVERN, Mr. FRANK of Massachusetts, Mr. SCHIFF, 

and Mrs. BONO) 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 2005’’. 
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1 SEC. 2. EMPLOYER-PROVIDED OFF-PREMISES HEALTH 

2 CLUB SERVICES. 

3 (a) TREATMENT AS FRINGE BENEFIT.—Subpara4 graph (A) of section 132(j)(4) of the Internal Revenue 

5 Code of 1986 (relating to on-premises gyms and other ath6 letic facilities) is amended to read as follows: 

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

8 not include—

9 ‘‘(i) the value of any on-premises ath10 letic facility provided by an employer to his 

11 employees, and 

12 ‘‘(ii) fees or membership expenses 

13 paid by an employer to an athletic or fit14 ness facility described in subparagraph (C) 

15 on behalf of its employees.’’. 

16 (b) ATHLETIC FACILITIES DESCRIBED.—Paragraph 

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

18 at the end the following new subparagraph: 

19 ‘‘(C) CERTAIN ATHLETIC OR FITNESS FA20 CILITIES DESCRIBED.—For purposes of sub21 paragraph (A)(ii), an athletic or fitness facility 

22 described in this subparagraph is a facility—

23 ‘‘(i) providing instruction in a pro24 gram of physical exercise or offering facili25 ties for the preservation, maintenance, en-
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1 couragement, or development of physical 

2 fitness, 

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) EMPLOYER DEDUCTION FOR DUES TO CERTAIN

14 ATHLETIC FACILITIES.—

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

16 274(a) of such Code (relating to denial of deduction 

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

18 following new sentence: ‘‘The preceding sentence 

19 shall not apply to fees or dues paid to athletic or fit20 ness facilities (within the meaning of section 

21 132(j)(4)(C)).’’. 

22 (2) CONFORMING AMENDMENT.—Section 

23 274(e)(4) of such Code is amended by inserting be24 fore the period at the end of the last sentence the 

25 following: ‘‘(other than fees or dues paid to athletic 
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1 or fitness facilities (within the meaning of section 

2 132(j)(4)(C)))’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act.

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