S. 786Senate118th Congress (2023-2025)In Committee

PHIT Act of 2023

AI-Generated Summary

Updated January 20, 2026 at 4:45 AM UTC

The PHIT Act of 2023 changes the tax code so that money spent on certain physical‑activity, fitness, and exercise items can be treated like medical expenses for tax purposes. This gives individuals a tax deduction for those costs, encouraging healthier lifestyles and easing the financial burden of staying active. The rule applies to individual and family taxpayers.

Key Provisions

Adds "qualified sports and fitness expenses" as deductible medical expenses under IRC §213, allowing them to be counted toward the medical expense deduction.
Defines qualified expenses as fees for fitness‑facility memberships, participation or instruction in physical activity, and equipment used for such activity.
Sets an annual cap of $1,000 per taxpayer (or $2,000 for joint or head‑of‑household returns) on the amount that can be treated as a medical expense.
Specifies what qualifies as a fitness facility and excludes private clubs, golf, hunting, sailing, or riding facilities, and requires compliance with anti‑discrimination laws.
Allows instructional videos, books, and similar materials to be treated as qualified expenses if they provide exercise instruction.
Limits equipment deductions: equipment must be used exclusively for physical activity, special apparel/footwear must be necessary for the activity, and single non‑exercise sports items are limited to $250.
Effective for taxable years beginning after the Act’s enactment.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text: CR S774-775)

Finance Committee

March 14, 2023

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SenateIntro Referral

Introduced in Senate

March 14, 2023

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text: CR S774-775)

Finance Committee

March 14, 2023

Floor Debate

2 members

What members said about S. 786 on the floor

1 Republican1 Democrat

Sen. Jack ReedD-RI · Mar 14, 2023

Madam President, service is a core American value. We take inspiration from those who have answered the call to serve, whether in defense of our Nation abroad or in strengthening our communities at home. Finding common cause through service is how we will overcome the major challenges of our time--addressing inequality, strengthening civil society and democratic institutions, and leaving a healthy, resilient planet to future generations. That is why I am proud to join Congressman John Larson of Connecticut in introducing the America's Call to Improving Opportunities Now, ACTION for National Service Act. Our legislation calls for a historic expansion of the number of service opportunities and an increased investment in those who serve.

The ACTION for National Service Act will honor our national value of service, while addressing the barriers that limit citizens' opportunities to serve. Our legislation will set us on a path to 1 million national service positions within 10 years. It will increase the educational award so that an individual completing 2 full years of service will earn the equivalent of 4 years of the average instate tuition at a public college or university. Indeed, those who are willing to serve should not be left to carry a heavy financial burden of student loan debt. The ACTION for National Service Act will also ease other financial barriers to service by increasing the living allowance and eliminating the tax liability for the education awards and living stipends. The bill calls for a robust outreach effort to ensure that all young people will know about the many opportunities to serve their country and their communities. It will mobilize a Civilian Climate Corps to address the urgent needs of hardest hit communities. Finally, the ACTION for National Service Act calls for elevating the Corporation for National and Community Service to a Cabinet-level Agency and establishes a National Service Foundation to leverage private sector resources to support national service activities.

Madam President, it is time that we reinvigorate the social contract we have with each other by elevating service as a national value. We must also make the commitment to invest in the education and professional development of those who are willing to sacrifice for our Nation. Developing the talents of our most committed citizens pays lifelong dividends. Our investment in the GI Bill not only honors our servicemembers but also enriches our Nation. Similarly, the education awards for those who have served through our national programs have economic impacts beyond the individuals who earn them. That is the new deal that the ACTION for National Service Act offers.

All AmeriCorps members take a pledge to get things done for Americans, to make communities safer, smarter and healthier, and to bring us together. It is a pledge we all should commit ourselves to.

I would like to thank Senators Coons, Baldwin, Brown, Blumenthal, Duckworth, and Klobuchar for joining me as original cosponsors of the ACTION for National Service Act and the over 40 organizations, including Voices for National Service, States for Service Coalition, Habitat for Humanity International, YouthBuild, Service Year, City Year, and With Honor Action, that have endorsed this legislation. We urge our colleagues to join us in working for its passage so we can ensure that all who aspire to serve have the opportunity to do so.

Sen. John ThuneR-SD · Mar 14, 2023

Madam President, I ask unamimous consent that the text of the bill be printed in the Record.

Sen. John ThuneR-SD · Mar 14, 2023

Madam President, I ask unamimous consent that the text of the bill be printed in the Record.

Bill Text

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Introduced in SenateIssued March 14, 2023

118th CONGRESS

1st Session

S. 786

IN THE SENATE OF THE UNITED STATES

March 14, 2023

Mr. Thune (for himself, Mr. Murphy, Mr. Cramer, Mr. Tillis, Mr. Marshall, Mrs. Capito, Mr. Wicker, Mr. Scott of South Carolina, Ms. Baldwin, Ms. Sinema, and Mr. King) 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 treat certain amounts paid for physical activity, fitness, and exercise as amounts paid for medical care.

Short title

This Act may be cited as the Personal Health Investment Today Act of 2023 or the PHIT Act of 2023.

Purpose

The purpose of this Act is to promote health and prevent disease, particularly diseases related to being overweight or 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.

Certain amounts paid for physical activity, fitness, and exercise treated as amounts paid for medical care

(a)

In general

Paragraph (1) of section 213(d) 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 inserting after subparagraph (D) the following new subparagraph:

(E)

for qualified sports and fitness expenses.

(b)

Qualified sports and fitness expenses

Subsection (d) of section 213 of the Internal Revenue Code of 1986 is amended by adding at the end the following new 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 physical exercise or physical activity, or

(iii)

for equipment used 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

For purposes of subparagraph (A)(i), the term fitness facility means a facility—

(i)

which provides instruction in a program of physical exercise, offers facilities for the preservation, maintenance, encouragement, or development of physical fitness, or serves 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)

the health or fitness component of which 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 constitutes 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 qualified sports and fitness expenses only—

(i)

if such equipment is utilized exclusively for participation in fitness, exercise, sport, or other physical activity,

(ii)

in the case of amounts paid for apparel or footwear, if such apparel or footwear is of a type that is necessary for, and is not used for any purpose other than, a specific physical activity, and

(iii)

in the case of amounts paid for any single item of sports equipment (other than exercise equipment), to the extent such amounts do not exceed $250.

(F)

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 a separate 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.