Certain amounts paid for physical activity, fitness, and exercise treated as amounts paid for medical care

(a) In general Section 223(d)(2)(A) is amended by adding at the end the following: For purposes of this subparagraph, amounts paid for qualified sports and fitness expenses shall be treated as paid for medical care.. (b) Qualified sports and fitness expenses Section 223(d)(2) is amended by adding at the end the following new subparagraph: (E) Qualified sports and fitness expenses For purposes of this paragraph— (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— (I) for membership at a fitness facility, or (II) for participation or instruction in physical exercise or physical activity. (ii) Overall dollar limitation (I) In general The aggregate amount treated as qualified sports and fitness expenses with respect to any taxpayer for any taxable year shall not exceed $500 ($1,000 in the case of a joint return or a head of household (as defined in section 2(b))). (II) Monthly limit The amount taken into account under subparagraph (A) as paid for participating in a physical activity during a month beginning during the taxable year shall not exceed an amount equal to 1/12 of the amount in effect with respect to the taxpayer for the taxable year under subclause (I). (iii) Fitness facility For purposes of clause (i)(I), the term fitness facility means 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 the State of jurisdiction and Federal anti-discrimination laws. (iv) Treatment of personal trainers, exercise videos, etc The term qualified sports and fitness expenses shall not include any amount paid for— (I) videos, books, or similar materials, (II) remote or virtual instruction in a physical exercise or physical activity, unless such instruction is live, or (III) one-on-one personal training. (v) Programs which include components other than physical exercise and physical activity Rules similar to the rules of section 213(d)(6) shall apply in the case of any program that includes physical exercise or physical activity and also other components. For purposes of the preceding sentence, travel and accommodations shall be treated as a separate component. (vi) Membership, participation, and instruction must be continuing An amount shall not be treated as paid for the purpose of participating in a physical activity unless— (I) in the case of a membership at a fitness facility, such membership is for more than 1 day, and (II) in the case of participation or instruction in physical exercise or physical activity, the amount paid constitutes payment for more than 1 occasion of such participation or instruction. (vii) Cost-of-living adjustment In the case of any taxable year beginning in a calendar year after 2026, each dollar amount in clause (ii)(I) shall be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins by substituting calendar year 2025 for calendar year 2016 in subparagraph (A)(ii) thereof. If any increase under the preceding sentence is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.