Coverage for amounts paid for healthy food, vitamins, dietary supplements, and sports and fitness expenses

(a) In general Paragraph (2) of section 223(c) of the Internal Revenue Code of 1986, as amended by the preceding provisions of this Act, is amended— (1) in subparagraph (A), by adding at the end the following new sentence: For purposes of this subparagraph, amounts paid for qualified wellness expenses shall be treated as paid for medical care, but only to the extent that such amounts paid with respect to each individual described in the first sentence of this subparagraph do not exceed $100 per month in the case of a health savings account the balance of which does not exceed $5,000; $150 per month in the case of a health savings account the balance of which exceeds $5,000 but does not exceed $10,000; and $200 per month in the case of a health savings account the balance of which exceeds $10,000., and (2) by adding at the end the following: (D) Qualified wellness expenses (i) In general For purposes of this paragraph, the term qualified wellness expenses means amounts paid for healthy food, vitamins, dietary supplements (as defined in section 201(ff) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321(ff))), or qualified sports and fitness expenses. (ii) Healthy food The term healthy food means any individual food which meets the criteria of section 101.65(d)(3)(i) of title 21, Code of Federal Regulations (or any successor regulations). (iii) Qualified sports and fitness expenses (I) In general The term qualified sports and fitness expenses means amounts paid exclusively for the sole purpose of participating in a physical activity, including— (aa) for membership at a fitness facility, (bb) for participation or instruction in physical exercise or physical activity, or (cc) for equipment used in a program (including a self-directed program) of physical exercise or physical activity, including a wearable fitness tracker. (II) Fitness facility For purposes of subclause (I)(aa), the term fitness facility means a facility— (aa) 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 or an organization described in section 501(c)(3) and exempt from tax under section 501(a), (bb) which is not a private club owned and operated by its members, (cc) which does not offer golf, hunting, sailing, or riding facilities, (dd) the health or fitness component of which is not incidental to its overall function and purpose, and (ee) which is fully compliant with the State of jurisdiction and Federal anti-discrimination laws. (III) Treatment of exercise videos, etc Videos, books, and similar materials shall be treated as described in subclause (I)(bb) if the content of such materials constitutes instruction in a program of physical exercise or physical activity. (IV) Limitations related to sports and fitness equipment Amounts paid for equipment described in subclause (I)(cc) shall be treated as qualified sports and fitness expenses only— (aa) if such equipment is utilized exclusively for participation in fitness, exercise, sport, or other physical activity, and (bb) in the case of amounts paid for apparel or footwear, if such apparel or footwear is of a type that is necessary for, and is not used for any purpose other than, a specific physical activity.. (b) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.