II
111th CONGRESS
1st Session
S. 913
IN THE SENATE OF THE UNITED STATES
April 28, 2009
Mr. Cornyn (for himself and Mr. Harkin) introduced the following bill; which was read twice and referred to the Committee on Finance
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.
Short title
This Act may be cited as the
Workforce Health Improvement Program
Act of 2009
.
Employer-provided off-premises health club services
Treatment as fringe benefit
Subparagraph (A) of section 132(j)(4) of the Internal Revenue Code of 1986 (relating to on-premises gyms and other athletic facilities) is amended to read as follows:
In general
Gross income shall not include—
the value of any on-premises athletic facility provided by an employer to its employees, and
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 its employees as does not exceed $900 per employee per year.
.
Athletic facilities described
Paragraph (4) of section 132(j) of the Internal Revenue Code of 1986 (relating to special rules) is amended by adding at the end the following new subparagraph:
Certain athletic or fitness facilities described
For purposes of subparagraph (A)(ii), an athletic or fitness facility described in this subparagraph is a facility—
which provides instruction in a program of physical exercise, offers facilities for the preservation, maintenance, encouragement, or development of physical fitness, or is the site of such a program of a State or local government,
which is not a private club owned and operated by its members,
which does not offer golf, hunting, sailing, or riding facilities,
whose health or fitness facility is not incidental to its overall function and purpose, and
which is fully compliant with the State of jurisdiction and Federal anti-discrimination laws.
.
Exclusion applies to highly compensated employees only if no discrimination
Section 132(j)(1) of the Internal Revenue Code of 1986 is amended—
by striking Paragraphs (1) and (2)
of subsection (a)
and inserting Subsections (a)(1), (a)(2), and
(j)(4)
, and
by striking the heading thereof through
(2)
apply
and inserting Certain exclusions
apply
.
Employer deduction for dues to certain athletic facilities
In general
Paragraph (3) of section 274(a) of the
Internal Revenue Code of 1986 (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 facilities (within the meaning of section
132(j)(4)(C)) as does not exceed $900 per employee per year.
.
Conforming amendment
The last sentence of section 274(e)(4) of
such Code is amended by inserting the first sentence of
before
subsection (a)(3)
.
Effective date
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.