Provides gross income tax deduction for certain health club membership fees and personal training services.

A4478

ASSEMBLY, No. 4478

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 24, 2026

Sponsored by:

Assemblyman� AL BARLAS

District 40 (Bergen, Essex and Passaic)

Co-Sponsored by:

Assemblyman DePhillips

SYNOPSIS

���� Provides gross income tax deduction for certain
health club membership fees and personal training services.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
providing a gross income tax deduction for certain health
club expenses, and supplementing Title 54A of the New Jersey Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.� A taxpayer shall be
allowed a deduction from the taxpayer�s gross income for the taxable year in the
amount of eligible expenses incurred by the taxpayer in the taxable year, not
to exceed:

���� (1)�� $5,000 for married
individuals filing a joint return or individuals filing as head of household or
as a surviving spouse for federal income tax purposes; or

���� (2)�� $2,500 for married
individuals filing separately, or unmarried individuals, other than individuals
filing as head of household or as a surviving spouse for federal income tax
purposes.

���� b.��� No deduction shall be
allowed pursuant to this section for any expenses that are reimbursed or
otherwise paid by the employer of the taxpayer.

���� c.���� For the purposes of
this section:

���� �Eligible expenses� means the
cost of initiation fees and monthly or annual fees or dues for a health club
services contract and the cost of personal training services provided at a
health club.� �Eligible expenses� do not include costs for: ancillary services,
other than personal training services, provided at the health club, including,
but not limited to, hair, skin, body, or nail treatments, child care services, towel
rentals, or locker rentals; guest passes; priority booking for classes; access
to premium amenities, including, but not limited to, exclusive lounges; food or
beverages; or amounts paid as a fine, penalty, or similar fee for a violation
of the terms of the health club services contract.

���� �Health club� means the same
as the term is defined in section 1 of P.L.1987, c.238 (C.56:8-39).

���� �Health club services
contract� means the same as that term is defined in section 1 of P.L.1987,
c.238 (C.56:8-39), which contract meets the requirements set forth in section 4
of P.L.1987, c.238 (C.56:8-42).

���� 2.��� This act shall take
effect immediately and apply to taxable years beginning on or after the January
1 next following the date of enactment.

STATEMENT

���� This bill allows a taxpayer to
claim a deduction against gross income for eligible expenses incurred by the
taxpayer for a health club services contract and personal training services if
the expenses are not covered by an employer health benefits plan.

���� Specifically, a taxpayer would
be allowed to claim a gross income deduction for eligible expenses incurred by
the taxpayer at a health club. �The maximum allowable deduction a taxpayer
could claim for the taxable year would be: $5,000 for married individuals filing
a joint return or individuals filing as head of household or as a surviving
spouse for federal income tax purposes; or $2,500 for married individuals
filing separately, or unmarried individuals, other than individuals filing as
head of household or as a surviving spouse� for federal income tax purposes.�
However, no deduction would be allowed for any expenses that are reimbursed or
otherwise paid by the employer of a taxpayer.�

���� Under the bill, �eligible
expenses� include the cost of initiation fees and monthly or annual fees or
dues for a health club services contract and the cost of personal training
services at the health club.

���� Under the bill, a �health club�
means an establishment which devotes or will devote 40 percent or more of its
square footage to providing services or facilities for the preservation,
maintenance, encouragement or development of physical fitness or physical
well-being.� Under current law, health clubs are required to be registered with
the Division of Consumer Affairs in the Department of Law and Public Safety and
operate in accordance with all applicable laws and regulations, which include
certain requirements related to the execution, cancellation, and renewal of
health club services contracts.� A �health club services contract� is an
agreement under which the buyer of health club services purchases or becomes
obligated to purchase health club services.