[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 772 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 772

 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

                             April 13, 2005

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.

    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 2005''.

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 its 
                        employees, and
                            ``(ii) 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.''.
    (b) 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:
                    ``(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) 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,
                            ``(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.''.
    (c) Exclusion Applies to Highly Compensated Employees Only if No 
Discrimination.--Section 132(j)(1) of the Internal Revenue Code of 1986 
is amended--
            (1) by striking ``Paragraphs (1) and (2) of subsection 
        (a)'' and inserting ``Subsections (a)(1), (a)(2), and (j)(4)'', 
        and
            (2) by striking the heading thereof through ``(2) apply'' 
        and inserting ``Certain exclusions apply''.
    (d) Employer Deduction for Dues to Certain Athletic Facilities.--
            (1) 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.''.
            (2) 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)''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
                                 <all>