The Personal Income Tax Law, in conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.

This bill, for taxable years beginning on or after January 1, 2026, would exclude from gross income any qualified fitness benefit provided by an employer to an employee, as specified. The bill would define “qualified fitness benefit” to include, among other things, fees or dues for membership in a fitness center, health club, or gym, except as specified.

Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would include additional information required for any bill authorizing a new tax expenditure.

This bill would take effect immediately as a tax levy.