House File 2293 - Introduced HOUSE FILE BY FOEGE Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing a small business qualified wellness program tax 2 credit and providing a retroactive applicability date. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5870HH 82 5 pf/nh/14 PAG LIN 1 1 Section 1. NEW SECTION. 135.27A SMALL BUSINESS QUALIFIED 1 2 WELLNESS PROGRAM CERTIFICATION. 1 3 1. The department shall adopt rules for the small business 1 4 qualified wellness programs that are eligible for a tax credit 1 5 pursuant to section 422.11V, section 422.33, subsection 25, 1 6 and section 422.60, subsection 15. The rules shall provide 1 7 for all of the following: 1 8 a. The minimum standards for use by a small business in 1 9 establishing a qualified wellness program to improve the 1 10 health of employees of the small business. 1 11 (1) The minimum standards shall include a requirement that 1 12 a qualified wellness program provide measurable positive 1 13 health outcomes for employees. 1 14 (2) The minimum standards shall also include but are not 1 15 limited to all of the following: 1 16 (a) Provision of a smoking cessation program that covers 1 17 all United States food and drug administration=approved 1 18 cessation treatments and cessation counseling through direct 1 19 payment, reimbursement, or purchase of suitable insurance 1 20 riders. 1 21 (b) Provision of a program for employees to obtain a 1 22 regular health risk assessment and to adhere to a treatment 1 23 program designed to address health risk factors including but 1 24 not limited to cholesterol levels, triglyceride levels, or 1 25 blood pressure levels that are outside of the ranges 1 26 recommended by the centers for disease control and prevention 1 27 of the United States department of health and human services. 1 28 (3) The minimum standards may include any of the 1 29 following: 1 30 (a) Provision of programs that target the prevention of 1 31 onset of disease including but not limited to immunizations 1 32 and promotion of physical activity. 1 33 (b) Provision of programs that target identification of 1 34 disease and the treatment of disease following the onset of 1 35 disease including but not limited to mammography, colonoscopy, 2 1 medication adherence programs, and disease management 2 2 programs. 2 3 b. Criteria and a process for certification of a small 2 4 business qualified wellness program including: 2 5 (1) An application process for small businesses to submit 2 6 a description of the small business's wellness program to the 2 7 department for certification. 2 8 (2) A review process and the criteria to be used in 2 9 evaluating a small business's wellness program to determine 2 10 whether to certify the program as a qualified wellness 2 11 program. 2 12 (3) The certification document, verifying a wellness 2 13 program as a qualified wellness program. 2 14 2. If the department determines that a small business 2 15 wellness program is a qualified wellness program, the 2 16 department shall send the certification document to the small 2 17 business as verification. 2 18 3. The department may charge a reasonable fee for the 2 19 application and certification processes. 2 20 Sec. 2. NEW SECTION. 422.11V SMALL BUSINESS QUALIFIED 2 21 WELLNESS PROGRAM TAX CREDIT. 2 22 1. a. The taxes imposed under this division, less the 2 23 amounts of nonrefundable credits allowed under this division, 2 24 shall be reduced by a small business qualified wellness 2 25 program tax credit for the cost to a small business of 2 26 providing a qualified wellness program. The amount of the 2 27 credit for each employer equals fifty percent of the program 2 28 costs, not to exceed an amount equal to three hundred dollars 2 29 per year per employee. 2 30 b. For purposes of this section: 2 31 (1) "Qualified wellness program" means a wellness program 2 32 certified by the department of public health pursuant to 2 33 section 135.27A. 2 34 (2) "Small business" means a for=profit enterprise that 2 35 employed for at least fifty percent of the working days of the 3 1 employer, at least two but not more than one hundred employees 3 2 during the tax year. 3 3 c. If the credit provided under this section exceeds the 3 4 taxpayer's state tax liability, the excess may be carried 3 5 forward to succeeding taxable years and used as a credit 3 6 against the taxpayer's state tax liability during those 3 7 taxable years. 3 8 2. An individual may claim a small business qualified 3 9 wellness program tax credit allowed a partnership, limited 3 10 liability company, S corporation, estate, or trust electing to 3 11 have the income taxed directly to the individual. The amount 3 12 claimed by the individual shall be based upon the pro rata 3 13 share of the individual's earnings of the partnership, limited 3 14 liability company, S corporation, estate, or trust. 3 15 3. A taxpayer claiming a credit under this section shall 3 16 not be precluded, in computing taxable income, from deducting 3 17 the amount of costs for providing a wellness program allowed 3 18 under any section of the Internal Revenue Code. 3 19 4. To receive the small business qualified wellness 3 20 program tax credit, a small business must submit an 3 21 application to the department accompanied by a certificate 3 22 received from the department of public health verifying the 3 23 small business's wellness program as a qualified wellness 3 24 program. If the taxpayer meets the criteria for eligibility, 3 25 the department shall issue to the taxpayer a certification of 3 26 entitlement for the small business qualified wellness program 3 27 tax credit. The certification must contain the taxpayer's 3 28 name, address, tax identification number, the amount of the 3 29 credit, and tax year for which the certificate applies. The 3 30 taxpayer shall file the tax credit certificate with the 3 31 taxpayer's tax return in order to claim the tax credit. The 3 32 department, in cooperation with the department of public 3 33 health, shall adopt rules to administer this section. 3 34 Sec. 3. Section 422.33, Code Supplement 2007, is amended 3 35 by adding the following new subsection: 4 1 NEW SUBSECTION. 25. The taxes imposed under this division 4 2 shall be reduced by a small business qualified wellness 4 3 program tax credit, provided for in section 422.11V. The tax 4 4 credit shall be subject to the same conditions, requirements, 4 5 and dollar limitations as provided for in section 422.11V. 4 6 Sec. 4. Section 422.60, Code Supplement 2007, is amended 4 7 by adding the following new subsection: 4 8 NEW SUBSECTION. 15. The taxes imposed under this division 4 9 shall be reduced by a small business qualified wellness 4 10 program tax credit, provided for in section 422.11V. The tax 4 11 credit shall be subject to the same conditions, requirements, 4 12 and dollar limitations as provided for in section 422.11V. 4 13 Sec. 5. RETROACTIVE APPLICABILITY DATE. This Act applies 4 14 retroactively to January 1, 2008, for tax years beginning on 4 15 or after that date. 4 16 EXPLANATION 4 17 This bill provides a small business qualified wellness 4 18 program tax credit under the individual and corporate income 4 19 taxes and the franchise tax. 4 20 A small business is a for=profit enterprise that employed 4 21 for at least 50 percent of the working days of the employer, 4 22 at least two but not more than 100 employees during the tax 4 23 year. The amount of the credit equals 50 percent of the costs 4 24 of the qualified wellness program, not to exceed an amount 4 25 equal to $300 per employee. Any excess credit may be carried 4 26 forward to succeeding tax years. 4 27 The bill directs the department of public health to adopt 4 28 rules specifying the requirements for a qualified wellness 4 29 program and to provide for certification of small business 4 30 qualified wellness programs. 4 31 The bill applies retroactively to January 1, 2008, for tax 4 32 years beginning on or after that date. 4 33 LSB 5870HH 82 4 34 pf/nh/14