Title: PHIT Act
Policy area: Taxation

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 up to $1,000 ($2,000 for a joint return or a head of household) of qualified sports and fitness expenses per year. The bill defines "qualified sports and fitness expenses" as amounts paid exclusively for the sole purpose of participating in a physical activity, including: (1) fitness facility memberships, (2) physical exercise or activity programs, and (3) equipment for a physical exercise or activity program.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1267 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 1267

  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

                             March 1, 2017

      Mr. Smith of Missouri (for himself, Mr. Kind, Mr. Kelly of 
 Pennsylvania, Mr. Blumenauer, Mr. Meehan, Mr. Pascrell, Mr. Bishop of 
    Michigan, Ms. Sewell of Alabama, Mr. Sessions, Ms. DelBene, Mr. 
 Fitzpatrick, and Ms. Sinema) 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 treat certain amounts 
 paid for physical activity, fitness, and exercise as amounts paid for 
                             medical care.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Personal Health Investment Today 
Act'' or the ``PHIT Act.''

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) almost 20 percent of American children between the ages 
        of 2 and 19 are overweight or suffer from obesity;
            (2) 8 of the 9 most expensive illnesses in the United 
        States are more common among overweight and obese individuals;
            (3) according to the Centers for Disease Control and 
        Prevention, the increase in the number of overweight and obese 
        Americans between 1987 and 2001 resulted in a 27 percent 
        increase in per capita health care costs;
            (4) the World Health Organization determined that in the 
        United States a $1 investment in physical activity alone (in 
        time and equipment) would reduce medical expenses by $3.20;
            (5) research indicates that 2 in 5 Americans would become 
        more physically active if offered a financial incentive;
            (6) the United States ranks last in the world in reducing 
        the number of preventable deaths resulting from obesity-related 
        chronic illnesses; and
            (7) engaging in physical activities at young ages when 
        children are learning lifelong behaviors can have a significant 
        impact on their long-term health.
    (b) Purpose.--The purpose of this Act is to promote health and 
prevent disease, particularly diseases related to being overweight and 
obese, by--
            (1) encouraging healthier lifestyles;
            (2) providing financial incentives to ease the financial 
        burden of engaging in healthy behavior; and
            (3) increasing the ability of individuals and families to 
        participate in physical fitness activities.

SEC. 3. CERTAIN AMOUNTS PAID FOR PHYSICAL ACTIVITY, FITNESS, AND 
              EXERCISE TREATED AS AMOUNTS PAID FOR MEDICAL CARE.

    (a) In General.--Section 213(d)(1) of the Internal Revenue Code of 
1986 is amended by striking ``or'' at the end of subparagraph (C), by 
striking the period at the end of subparagraph (D) and inserting ``, 
or'', and by adding at the end the following new subparagraph:
                    ``(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' means amounts paid exclusively for 
                the sole purpose of participating in a physical 
                activity including--
                            ``(i) for membership at a fitness facility,
                            ``(ii) for participation or instruction in 
                        a program of physical exercise or physical 
                        activity, and
                            ``(iii) for equipment for use in a program 
                        (including a self-directed program) of physical 
                        exercise or physical activity.
                    ``(B) Overall dollar limitation.--The aggregate 
                amount treated as qualified sports and fitness expenses 
                with respect to any taxpayer for any taxable year shall 
                not exceed $1,000 ($2,000 in the case of a joint return 
                or a head of household (as defined in section 2(b))).
                    ``(C) Fitness facility defined.--For purposes of 
                subparagraph (A)(i), the term `fitness facility' means 
                a facility--
                            ``(i) providing instruction in a program of 
                        physical exercise, 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 golf, hunting, 
                        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-
                        discrimination laws.
                    ``(D) Treatment of exercise videos, etc.--Videos, 
                books, and similar materials shall be treated as 
                described in subparagraph (A)(ii) if the content of 
                such materials constitute instruction in a program of 
                physical exercise or physical activity.
                    ``(E) Limitations related to sports and fitness 
                equipment.--Amounts paid for equipment described in 
                subparagraph (A)(iii) shall be treated as a qualified 
                sports and fitness expense only--
                            ``(i) if such equipment is utilized 
                        exclusively for participation in fitness, 
                        exercise, sport, or other physical activity 
                        programs,
                            ``(ii) if such equipment is not apparel or 
                        footwear, and
                            ``(iii) in the case of any item of sports 
                        equipment (other than exercise equipment), with 
                        respect to so much of the amount paid for such 
                        item as does not exceed $250.
                    ``(F) Programs which include components other than 
                physical exercise and physical activity.--Rules similar 
                to the rules of section 213(d)(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.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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