[Congressional Record Volume 157, Number 147 (Tuesday, October 4, 2011)]
[Senate]
[Pages S6091-S6092]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CORNYN (for himself and Mr. Harkin):
  S. 1644. 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; to the Committee on Finance.
  Mr. CORNYN. Mr. President, I rise to introduce the Workforce Health 
Improvement Program Act of 2011, otherwise known as the WHIP Act. I am 
very pleased to be joined again by my good friend and colleague, 
Senator Tom Harkin, who shares my commitment to helping keep America 
fit.
  Public health experts unanimously agree that people who maintain 
active and healthy lifestyles dramatically reduce their risk of 
contracting chronic diseases. And as the government works to reign in 
the high cost of health care, it is worth talking about what we all can 
do to help ourselves. As you know, prevention is key, and exercise is a 
primary component in the prevention of many adverse health conditions 
that can arise over one's lifetime. A physically fit population helps 
to decrease health-care costs, reduce governmental spending, reduce 
illnesses, and improve worker productivity.
  According to the Centers for Disease Control and Prevention, CDC, the 
economic cost alone to businesses in the form of health insurance and 
absenteeism is more that $15 billion. Additionally, the CDC estimates 
that more than one-third of all U.S. adults fail to meet minimum 
recommendations for aerobic physical activity. With physical inactivity 
being a key contributing factor to overweight and obesity, and 
adversely affecting workforce productivity, we quite simply need to do 
more to help employers encourage exercise.
  Given the tremendous benefits exercise provides, I believe Congress 
has a duty to create as many incentives as possible to get Americans 
off the couch, up, and moving.
  With this in mind, I am reintroducing the WHIP Act.
  Current law already permits businesses to deduct the cost of on-site 
workout facilities, which are provided for the benefit of employees on 
a pre-tax basis. But if a business wants or needs to outsource these 
health benefits, they and/or their employees are required to bear the 
full cost. In other words, employees who receive off-site fitness 
center subsidies are required to pay income tax on the benefits, and 
their employers bear the associated administrative costs of complying 
with the IRS rules.
  The WHIP Act would correct this inequity in the tax code to the 
benefit of many smaller businesses and their employees. Specifically, 
it would provide an employer's right to deduct up to $900 of the cost 
of providing health club benefits off-site for their employees. In 
addition, the employer's contribution to the cost of the health club 
fees would not be taxable income for employees--creating an incentive 
for more employers to contribute to the health and welfare of their 
employees.
  The WHIP Act is an important step in reversing the largely 
preventable

[[Page S6092]]

health crisis that our country is facing, through the promotion of 
physical activity and disease prevention. It is a critical component of 
America's health care policy: prevention. It will improve our nation's 
quality of life by promoting physical activity and preventing disease.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1644

       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 2011''.

     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.
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