Americans would be incentivized to live healthier lives under a bipartisan, bicameral bill offered by U.S. Rep. Mike Kelly (R-PA) and U.S. Sen. John Thune (R-SD) that would permit them to use a portion of their pre-tax health savings account (HSA) and flexible spending account (FSA) toward qualified sports and fitness purchases.
“This bill gives kids, especially those in underserved or low-income communities, a real chance to play the sport of their choice,” Rep. Kelly said on March 14. “This isn’t just about athletics: it’s about gaining critical team-building and character-building traits that stay with kids for the rest of their lives.”
“By giving Americans greater flexibility with their HSAs and FSAs, we can empower people to make healthy choices, get active, and hopefully avoid the onset of costly chronic conditions,” added Sen. Thune.
The Personal Health Investment Today (PHIT) Act, H.R. 1582/S. 786, would amend the Internal Revenue Code of 1986 to treat certain amounts paid for physical activity, fitness, and exercise as amounts paid for medical care, according to the congressional record bill summary.
Rep. Kelly on March 14 sponsored H.R. 1582 with six original cosponsors, including U.S. Reps. Darin LaHood (R-IL), Brian Fitzpatrick (R-PA), and Jimmy Panetta (D-CA), while on the same day Sen. Thune sponsored S. 786 with 10 original cosponsors, including U.S. Sens. Thom Tillis (R-NC), Shelley Moore Capito (R-WV), Roger Wicker (R-MS), Tim Scott (R-SC), and Chris Murphy (D-CT).
“Allowing the use of tax-favored health investment accounts to pay for things that support youth activity and physical health is a common-sense approach to incentivizing exercise and lowering the cost to do so,” Rep. LaHood said. “This bipartisan bill will not only help provide the opportunity for better health outcomes, but it will also reduce costs to our healthcare system in the long run.”
“Encouraging physical activity is so important to promoting a healthier lifestyle and is one of the most cost-effective forms of preventative health care,” added Rep. Fitzpatrick. “I’m proud to co-lead this bipartisan, bicameral legislation that will empower families to stay active through youth sports, fitness programs, and outdoor recreation while investing in their long-term health.”
If enacted, the measure would allow a medical care tax deduction for up to $1,000 ($2,000 for a joint return or a head of household) of qualified sports and fitness expenses per year, according to a bill summary provided by the lawmakers.
Qualified sports and fitness expenses would be defined under the bill as amounts paid exclusively for participating in a physical activity, including fitness facility memberships, physical exercise or activity programs, or equipment for a physical exercise or activity program, the summary says.
Likewise, qualified expenses would not include: private clubs owned and operated by members or clubs with golf, hunting, sailing, or riding facilities, the summary says. Regarding sports equipment (other than exercise equipment), reimbursement for a single item cannot exceed $250 and pre-tax dollars cannot be used for general fitness apparel or footwear.
“As a lifelong athlete and fitness enthusiast, I understand the value of and feel grateful to have access to gyms and fitness equipment,” said Sen. Thune. “For some Americans, though, certain gym or athletic league membership costs can be prohibitive, keeping them from pursuing healthy habits like exercising or participating in other physical activities.”
The bill has already received several major endorsements, including from the National Football League, the National Hockey League, the National Basketball Association, Major League Baseball, the Sports and Fitness Industry Association, IHRSA-The Health & Fitness Association, the National Council of Youth Sports, and Pop Warner Little Scholars.