[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1491 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1491

 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 SENATE OF THE UNITED STATES

                July 30 (legislative day, July 21), 2003

  Mr. Cornyn 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.

    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 ``Workforce Health Improvement Program 
Act of 2003''.

SEC. 2. EMPLOYER-PROVIDED OFF-PREMISES HEALTH CLUB SERVICES.

    (a) 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:
                    ``(A) In general.--Gross income shall not include--
                            ``(i) the value of any on-premises athletic 
                        facility provided by an employer to his 
                        employees, and
                            ``(ii) fees or membership expenses paid by 
                        an employer to an athletic or fitness facility 
                        described in subparagraph (C) on behalf of its 
                        employees.''.
    (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 facilities 
                described.--For purposes of subparagraph (A)(ii), an 
                athletic or fitness facility described in this 
                subparagraph is a facility--
                            ``(i) providing instruction in a program of 
                        physical exercise or offering facilities for 
                        the preservation, maintenance, encouragement, 
                        or development of physical fitness,
                            ``(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-
                        discriminations laws.''.
    (c) Employer Deduction for Dues to Certain Athletic Facilities.--
            (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 fees or dues paid to 
        athletic or fitness facilities (within the meaning of section 
        132(j)(4)(C)).''.
            (2) Conforming amendment.--Section 274(e)(4) of such Code 
        is amended by inserting before the period at the end of the 
        last sentence the following: ``(other than fees or dues paid to 
        athletic or fitness facilities (within the meaning of section 
        132(j)(4)(C)))''.
    (d) 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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