This bill amends the Internal Revenue Code to modify the tax exclusion of the value of on-premises employer-provided athletic facilities. The bill provides for an exclusion from the gross income of an employee for: (1) the value of any on-premises employer-provided athletic facility; and (2) so much of the fess, dues, or other membership expenses paid by an employer on behalf of an employee, but not exceeding $900 per employee per year. The bill sets forth an expanded definition of "athletic or fitness facility," which specifies that the health or fitness component of such a facility cannot be incidental to its overall function and purpose.

The bill also allows an employer to claim a tax deduction for the fees, dues, or membership expenses paid to an athletic or fitness facility on behalf of an employee.