The Sporting Goods Manufacturers Association reported last week that the U.S. Congress will reintroduce the Physical Health Investment Today Bill later this month. The Bill, better known as the PHIT Bill, would change current federal tax law to allow for the use of pre-tax dollars to cover expenses related to sports, fitness, and other physical activities.
Americans could invest up to $1,000 annually to pay for physical activities by placing money in existing pre-tax Flexible Spending Accounts (FSA), Health Savings Accounts (HSA), Medical Savings Accounts (MSA), and/or medical reimbursement arrangements. PHIT would only expand the eligible expenses. It would not increase contribution limits to these accounts.
PHIT made rapid progress from its conceptual stage in September of 2005 to introduction in May of last year and attracted Congressional sponsors across the ideological spectrum on both sides of the aisle. SGMA anticipates many more sponsors this year.
