In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; and providing for personal health investment tax credit.
Summary
HB1126 would amend Pennsylvania’s Tax Reform Code to create tax benefits tied to fitness and physical activity expenses, with a particular focus on service members. First, it would allow fitness facilities to deduct the value of free or discounted memberships provided to “qualified individuals,” defined as active-duty members of the U.S. Armed Forces, Pennsylvania National Guard members, and reserve component members. The deduction is capped at the amount the facility charges other members and cannot reduce taxable income below zero.
Second, the bill creates a new “personal health investment tax credit” for resident taxpayers who are qualified individuals and who pay for qualified sports and fitness expenses during the tax year. Eligible expenses include fitness facility memberships, instruction in physical exercise or activity, and equipment used for a physical activity program. The credit would be capped at $600 per taxpayer per year, could only be used against Pennsylvania personal income tax liability, and could not be carried forward, carried back, refunded, sold, assigned, or transferred. The Department of Revenue would be directed to publish guidance and may issue regulations to administer the credit.
Impact
The bill would amend the Personal Income Tax and Corporate Net Income Tax provisions of the Tax Reform Code of 1971 and add a new Article XVIII-I establishing the personal health investment tax credit. It would create a new state tax preference for qualifying military-connected taxpayers and a related deduction for fitness facilities that provide discounted or free memberships to those individuals. The changes would apply to taxable years beginning after December 31, 2026, and would require administrative guidance from the Department of Revenue.
Sentiment
The available voting history suggests the bill was received favorably in committee, as the House Veterans Affairs and Emergency Preparedness Committee reported it as committed by a unanimous 26-0 vote. No committee transcript is available, so there is no recorded floor or committee debate to indicate broader support or opposition. Based on the committee vote and the bill’s focus on service members, the measure appears to have been viewed positively at least at the committee stage.
Contention
The text itself suggests the main policy questions are fiscal and administrative rather than ideological: whether Pennsylvania should subsidize fitness-related spending through the tax code, how broadly “qualified sports and fitness expenses” should be interpreted, and whether the $600 cap is sufficient or too generous. Another possible point of contention is the targeted nature of the benefit, since it is limited to active-duty military, National Guard, and reserve members rather than all taxpayers. No recorded transcript is available, so no specific objections or sponsors’ responses are documented in the provided materials.
In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; in tax credit and tax benefit administration, further providing for definitions; and providing for personal health investment tax credit.