Personal income taxes: unemployment insurance: fitness benefit.

The Personal Income Tax Law, in modified conformity with federal income tax law, allows various deductions from gross income in calculating adjusted gross income. This bill, for taxable years beginning on or after January 1, 2026, would allow a deduction from gross income for any qualified fitness benefit provided by an employer to an employee, as specified. The bill would define "qualified fitness benefit" as a uniform stipend amount to all full-time employees for fees or dues for membership in a fitness center, health club, or gym, except as specified. Existing law requires specified employers to contribute to the Unemployment Fund based on wages paid for employment. Existing law defines "wages" for this purpose, as provided, and excludes from that definition, among other things, remuneration in excess of $7,000 paid to an individual by an employer during any calendar year, with respect to employment. This bill would additionally exclude from that definition of wages any qualified fitness benefit provided by an employer to an employee, up to $600 per year, 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.