S. 2296 — Introduced in Senate

II 114th CONGRESS 1st Session S. 2296 IN THE SENATE OF THE UNITED STATES November 18, 2015 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. 1. Short title This Act may be cited as the Workforce Health Improvement Program Act of 2015. 2. Employer-provided off-premises athletic and fitness facility services (a) Treatment as fringe benefit Subparagraph (A) of section 132(j)(4) of the Internal Revenue Code of 1986 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 the employees of the employer, and (ii) so much of the fees, dues, or other membership expenses paid by an employer on behalf of the employees of the employer for membership in or use of an athletic or fitness facility described in subparagraph (C) as does not exceed $900 per year per employee on behalf of whom such amounts are paid. . (b) Athletic or fitness facilities Paragraph (4) of section 132(j) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (C) Athletic or fitness facility 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 serves as 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) the health or fitness component of which is not incidental to its overall function and purpose, and (v) which is fully compliant with applicable Federal and State anti-discrimination laws. . (c) Exclusion applies to highly compensated employees only if no discrimination Paragraph (1) of section 132(j) 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 Exclusions under subsection (a)(1) and (2) in the heading and inserting Certain exclusions. (d) Employer deduction (1) In general Paragraph (3) of section 274(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: The preceding sentence shall not apply to amounts to which section 132(j)(4)(A)(ii) applies.. (2) Conforming amendment The last sentence of paragraph (4) of section 274(e) of such Code is amended by striking subsection (a)(3) and inserting the first sentence of 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.