PHIT Act of 2025

Financial Incentives for Health: The bill provides financial incentives to ease the cost of engaging in healthy behavior (Section 2).

Fitness Facility Memberships: Taxpayers may be able to treat amounts paid for memberships at certain fitness facilities as medical care (Section 3(b)(A)(i)).

Physical Instruction: The bill allows for the treatment of costs related to participation in or instruction in physical exercise or physical activity (Section 3(b)(A)(ii)).

Exercise Materials: Instructional content found in videos, books, and similar materials can be treated as part of physical exercise or activity expenses (Section 3(b)(A)(D)).

Equipment and Apparel: Costs for equipment used in a physical exercise program, including specific apparel or footwear necessary for an activity, can be treated as qualified expenses (Section 3(b)(A)(iii) and Section 3(b)(E)).

Annual Dollar Limitations: There are strict caps on how much can be claimed, with a limit of $1,000 for individual taxpayers or $2,000 for joint returns or heads of household (Section 3(b)(A)(B)).

Equipment Cost Restrictions: For single items of sports equipment that are not specifically exercise equipment, the amount treated as a qualified expense cannot exceed $250 (Section 3(b)(E)(iii)).

Facility Exclusions: Certain facilities, such as private clubs owned and operated by members or those offering golf, hunting, sailing, or riding, do not qualify (Section 3(b)(C)(ii) and Section 3(b)(C)(iii)).