The American fitness industry’s hopes of making gym memberships count as tax-free medical expenses took a major step forward on Thursday when the House of Representatives passed President Trump’s sweeping new tax bill.
Narrowly passed in the house on Thursday by a vote of 215-214, the bill contains language that would allow “qualified sports and fitness expenses,” including gym memberships and certain fitness classes, to count as tax-free medical expenses. It would allow American taxpayers to use up to $500 per year on qualified sports and fitness expenses or up to $1,000 per household.
According to the Health & Fitness Association (HFA), the bill contains “priority language” in line with the Personal Health Improvement Today (PHIT) Act, which would allow Americans to use pre-tax funds from HSA and FSA accounts on fitness and youth sports expenses.
In a letter to members this morning, HFA vice president of government affairs Mike Goscinski said the bill’s language marks a “significant milestone for the fitness industry” as it works to pass the PHIT Act.
“Our success in securing PHIT’s inclusion is the direct result of years of coordinated advocacy, strategic engagement with lawmakers and the unified voice of our members making the case that physical activity is preventive health care,” Goscinski wrote.
HFA and other fitness industry stakeholders have been working to get the PHIT Act passed for around two decades. In 2018, PHIT passed in the House but didn’t make it through the Senate. It was reintroduced earlier this year with bipartisan support.
While key provisions from the PHIT Act have yet to become law, there’s renewed hope in industry circles that it will happen this year thanks to the Trump Administration’s “Make America Healthy Again” initiative. Thursday’s news means PHIT has its best chance in years – maybe ever – to finally make it over the line.
As President Trump’s tax bill heads to the Senate, HFA says it’s working to ensure language from the PHIT Act remains part of the bill.
“HFA is actively engaging with Senate offices and committee staff to keep PHIT in the final package,” Goscinski wrote.
