I 
110TH CONGRESS 
1ST SESSION H. R. 1748 
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 
MARCH 28, 2007 
Mr. WAMP (for himself, Mr. UDALL of Colorado, Mr. KIND, and Mr. 
RAMSTAD) 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 expand 
workplace health incentives by equalizing the tax con-
sequences of employee athletic facility use. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Workforce Health Im-
provement Program Act of 2007’’. 
SEC. 
2. 
EMPLOYER-PROVIDED 
OFF-PREMISES 
HEALTH 
CLUB SERVICES. 
(a) TREATMENT
AS FRINGE BENEFIT.—Subpara-
graph (A) of section 132(j)(4) of the Internal Revenue 
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Code of 1986 (relating to on-premises gyms and other ath-
letic facilities) is amended to read as follows: 
‘‘(A) IN
GENERAL.—Gross income shall 
not include— 
‘‘(i) the value of any on-premises ath-
letic facility provided by an employer to the 
employer’s employees, and 
‘‘(ii) so much of the fees, dues, or 
membership expenses paid by an employer 
to an athletic or fitness facility described 
in subparagraph (C) on behalf of the em-
ployer’s employees as does not exceed $900 
per employer per year.’’. 
(b) ATHLETIC FACILITIES DESCRIBED.—Paragraph 
(4) of section 132(j) of such Code is amended by adding 
at the end the following new subparagraph: 
‘‘(C) CERTAIN ATHLETIC OR FITNESS FA-
CILITIES
DESCRIBED.—For purposes of sub-
paragraph (A)(ii), an athletic or fitness facility 
described in this subparagraph is a facility— 
‘‘(i) providing instruction in a pro-
gram of physical exercise, offering facilities 
for the preservation, maintenance, encour-
agement, or development of physical fit-
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ness, or serving as the site of such a pro-
gram of a State or local government, 
‘‘(ii) which is not a private club owned 
and operated by its members, 
‘‘(iii) which does not offer golf, hunt-
ing, sailing, or riding facilities, 
‘‘(iv) whose health or fitness facility is 
not incidental to its overall function and 
purpose, and 
‘‘(v) which is fully compliant with the 
State of jurisdiction and Federal anti-dis-
crimination laws.’’. 
(c) EXCLUSION APPLIES TO HIGHLY COMPENSATED 
EMPLOYEES ONLY IF NO DISCRIMINATION.—Paragraph 
(1) of section 132(j) of such Code is amended— 
(1) by striking ‘‘Paragraphs (1) and (2) of sub-
section (a)’’ and inserting ‘‘Paragraphs (1) and (2) 
of subsection (a) and paragraph (4) of subsection 
(j)’’, and 
(2) in the heading by striking ‘‘EXCLUSIONS 
UNDER SUBSECTION (A)(1) AND (2)’’ and inserting 
‘‘CERTAIN EXCLUSIONS’’. 
(d) EMPLOYER DEDUCTION FOR DUES TO CERTAIN 
ATHLETIC FACILITIES.— 
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(1) IN
GENERAL.—Paragraph (3) of section 
274(a) of such Code (relating to denial of deduction 
for club dues) is amended by adding at the end the 
following new sentence: ‘‘The preceding sentence 
shall not apply to so much of the fees, dues, or 
membership expenses paid to athletic or fitness fa-
cilities (within the meaning of section 132(j)(4)(C)) 
as does not exceed $900 per employee per year.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
274(e)(4) of such Code is amended by inserting ‘‘the 
first sentence of’’ before ‘‘subsection (a)(3)’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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