PHIT Act

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. 1. Short title This Act may be cited as the Personal Health Investment Today Act PHIT Act. 2. Certain amounts paid for physical activity, fitness, and exercise treated as amounts paid for medical care (a) In general Section 213(d)(1) or , or (E) for qualified sports and fitness expenses. . (b) Qualified sports and fitness expenses Section 213(d) of such Code is amended by adding at the end the following paragraph: (12) Qualified sports and fitness expenses (A) In general The term qualified sports and fitness expenses (i) membership at a fitness facility, (ii) participation or instruction in a program of physical exercise or physical activity, or (iii) safety equipment for use in a program (including a self-directed program) of physical exercise or physical activity. (B) Dollar limitations (i) Overall limitation The aggregate amount treated as qualified sports and fitness expenses with respect to any taxpayer for any taxable year shall not exceed $500 (twice such amount in the case of a joint return or a head of household (as defined in section 2(b))). (ii) Safety equipment The amount treated as qualified sports and fitness expenses with respect to any item of safety equipment described in subparagraph (A)(iii) shall not exceed $250. (C) Certain exclusions (i) In general Golf, hunting, sailing, and horseback riding shall not be treated as a physical exercise or physical activity. (ii) Exercise videos, etc Qualified sports and fitness expenses shall not include videos, books, or similar materials. (D) Fitness facility defined For purposes of subparagraph (A)(i), the term fitness facility (i) providing instruction in a program of physical exercise or physical activity, offering facilities for the preservation, maintenance, encouragement, or development of physical fitness, or serving as the site of such a program of a State or local government, (ii) which is not a private club owned and operated by its members, (iii) which does not offer facilities for any activity described in subparagraph (C)(i), (iv) whose health or fitness facility is not incidental to its overall function and purpose, and (v) which is fully compliant with applicable State and Federal anti-discrimination laws. (E) Programs which include components other than physical exercise and physical activity Rules similar to the rules of paragraph (6) shall apply in the case of any program that includes physical exercise or physical activity and also other components. For purposes of the preceding sentence, travel and accommodations shall be treated as an other component. (F) Inflation adjustment In the case of any taxable year beginning in a calendar year after 2019, the $500 amount in subparagraph (B)(i) and the $250 amount in subparagraph (B)(ii) shall each be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins, determined by substituting calendar year 2018 calendar year 2016 If any increase determined under the preceding sentence is not a multiple of $10, such increase shall be rounded to the next lowest multiple of $10. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2018. July 19, 2018 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Summary: Personal Health Investment Today Act or the PHIT Act This bill amends the Internal Revenue Code to allow a medical care tax deduction for qualified sports and fitness expenses. The deduction applies to amounts paid for: (1) fitness facility memberships, (2) physical exercise or activity programs, and (3) safety equipment for use in a physical exercise or activity program. The overall deduction is limited to $500 per year (twice the amount in the case of a joint return or a head of household), and a deduction for safety equipment may not exceed $250. The bill requires the limits to be adjusted for inflation after 2019. The deduction does not include expenses for golf, hunting, sailing, horseback riding, and videos or books.