Senate Study Bill 3103 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM) A BILL FOR An Act creating a tax credit for certain small businesses 1 offering wellness programs to employees and including 2 effective date and applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5732SC (2) 84 mm/sc
S.F. _____ Section 1. NEW SECTION . 135.27B Wellness program tax 1 credit. 2 1. a. A wellness program tax credit shall be allowed 3 against the taxes imposed in chapter 422, divisions II, III, 4 and V, and in chapter 432, and against the moneys and credits 5 tax imposed in section 533.329, for a portion of a taxpayer’s 6 costs incurred in providing a certified small business wellness 7 program to employees. 8 b. The tax credit shall be an amount equal to fifty percent 9 of the costs incurred in providing a certified small business 10 wellness program to employees. However, the total amount of 11 the tax credit claimed shall not exceed an amount equal to 12 three hundred dollars per employee per tax year. 13 c. To be eligible for the tax credit, a small business shall 14 be located in this state, be operated for profit and under a 15 single management, and have at least two but not more than one 16 hundred employees employed for at least fifty percent of the 17 employer’s working days during the tax year. 18 d. An individual may claim a tax credit under this section 19 of a partnership, limited liability company, S corporation, 20 estate, or trust electing to have income taxed directly to 21 the individual. The amount claimed by the individual shall 22 be based upon the pro rata share of the individual’s earnings 23 from the partnership, limited liability company, S corporation, 24 estate, or trust. 25 e. Any tax credit in excess of the tax liability is not 26 refundable, but the taxpayer may elect to have the excess 27 credited to the tax liability for the following five years or 28 until depleted, whichever is earlier. A tax credit shall not 29 be carried back to a tax year prior to the tax year in which the 30 taxpayer first receives the tax credit. 31 f. A taxpayer claiming a credit under this section shall 32 not be precluded, in computing taxable income, from deducting 33 the costs of providing a wellness program allowed under any 34 provision of the Internal Revenue Code. 35 -1- LSB 5732SC (2) 84 mm/sc 1/ 5
S.F. _____ 2. To claim a wellness program tax credit under this 1 section, a taxpayer must attach a tax credit certificate issued 2 by the department verifying the taxpayer’s eligibility for the 3 credit. The tax credit certificate attached to the taxpayer’s 4 tax return shall be issued in the taxpayer’s name, contain an 5 expiration date that falls on or after the last day of the 6 taxable year for which the taxpayer is claiming the tax credit, 7 and show a tax credit amount equal to or greater than the tax 8 credit claimed on the taxpayer’s tax return. 9 3. a. The department shall accept applications from 10 eligible small businesses for wellness program tax credits. 11 b. If the department determines that a wellness program 12 qualifies for a tax credit pursuant to this section, 13 the department shall issue a wellness program tax credit 14 certificate to be attached to the small business’s tax return. 15 The tax credit certificate shall contain the taxpayer’s name, 16 address, tax identification number, the number of employees, 17 the total costs incurred in providing the wellness program, and 18 any other information required by the department of revenue. 19 c. The tax credit certificate, unless otherwise void, shall 20 be accepted by the department of revenue as payment for taxes 21 imposed pursuant to chapter 422, divisions II, III, and V, 22 chapter 432, and section 533.329, subject to any conditions or 23 restrictions placed by the department upon the face of the tax 24 credit and subject to the limitations of this section. 25 d. Tax credits issued under this section are not 26 transferable to any person or entity. 27 4. The department shall not issue a tax credit certificate 28 under this section unless the wellness program offered by a 29 small business provides for all of the following: 30 a. The development of measurable positive health outcomes 31 for employees participating in the wellness program. 32 b. Regular health risk factor assessments and a treatment 33 regimen designed to address health risk factors. For purposes 34 of this paragraph, “health risk factor” means a condition with 35 -2- LSB 5732SC (2) 84 mm/sc 2/ 5
S.F. _____ the potential to negatively affect a person’s health or bodily 1 well-being. Health risk factors include but are not limited 2 to cholesterol levels, triglyceride levels, or blood pressure 3 levels that are outside the ranges for such measurements 4 recommended by the centers for disease control and prevention 5 of the United States department of health and human services. 6 c. Tobacco cessation education that covers all of the 7 cessation treatments and counseling approved by the United 8 States food and drug administration. Tobacco cessation 9 education may be provided by direct payment on an employee’s 10 behalf, reimbursement of costs, or by the purchase of insurance 11 coverage providing for such education. 12 d. Weight loss education that addresses both nutrition and 13 physical activity. 14 e. Preventative care education, including information about 15 immunization, promotion of physical activity, nutritional 16 counseling, and stress management techniques. 17 f. Disease management services that identify diseases before 18 onset and treat diseases after onset. 19 5. The department may charge a fee in an amount not to 20 exceed fifty dollars per application for costs incurred in the 21 administration of this section. 22 6. The department shall adopt rules in accordance with 23 chapter 17A for the administration of this section, including 24 rules governing the application process and the criteria used 25 to evaluate applications. 26 Sec. 2. NEW SECTION . 422.11I Wellness program tax credit. 27 The taxes imposed under this division, less the credits 28 allowed under section 422.12, shall be reduced by a wellness 29 program tax credit allowed under section 135.27B. 30 Sec. 3. Section 422.33, Code Supplement 2011, is amended by 31 adding the following new subsection: 32 NEW SUBSECTION . 29. The taxes imposed under this division 33 shall be reduced by a wellness program tax credit allowed under 34 section 135.27B. 35 -3- LSB 5732SC (2) 84 mm/sc 3/ 5
S.F. _____ Sec. 4. Section 422.60, Code Supplement 2011, is amended by 1 adding the following new subsection: 2 NEW SUBSECTION . 14. The taxes imposed under this division 3 shall be reduced by a wellness program tax credit allowed under 4 section 135.27B. 5 Sec. 5. NEW SECTION . 432.12N Wellness program tax credit. 6 The taxes imposed under this chapter shall be reduced by a 7 wellness program tax credit allowed under section 135.27B. 8 Sec. 6. Section 533.329, subsection 2, Code Supplement 9 2011, is amended by adding the following new paragraph: 10 NEW PARAGRAPH . m. The moneys and credits tax imposed under 11 this section shall be reduced by a wellness program tax credit 12 allowed under section 135.27B. 13 Sec. 7. EFFECTIVE DATE. This Act takes effect January 1, 14 2013. 15 Sec. 8. APPLICABILITY. This Act applies to tax years 16 beginning on or after January 1, 2013. 17 EXPLANATION 18 This bill provides a credit against the individual and 19 corporate income taxes, franchise tax, insurance premiums tax, 20 and moneys and credits tax for a portion of a taxpayer’s costs 21 incurred in providing a certified small business wellness 22 program to employees. 23 The amount of the tax credit is 50 percent of the costs 24 incurred in providing a certified small business wellness 25 program to employees, but the total amount of the credit 26 claimed cannot exceed $300 per employee per year. 27 To be eligible for the tax credit, a small business must 28 be located in the state, be operated for profit and under a 29 single management, and have at least two but not more than 100 30 employees employed for at least 50 percent of the employer’s 31 working days during the tax year. 32 The tax credit is not refundable, but the taxpayer may 33 elect to have the excess credited to the tax liability for the 34 following five years or until depleted, whichever is earlier. 35 -4- LSB 5732SC (2) 84 mm/sc 4/ 5
S.F. _____ A tax credit shall not be carried back to a tax year prior 1 to the tax year in which the taxpayer first receives the tax 2 credit. The tax credit is not transferable. 3 To claim a certified wellness program tax credit under this 4 section, a taxpayer must attach a tax credit certificate issued 5 by the department of public health verifying the taxpayer’s 6 eligibility for the credit. 7 The department will issue a tax credit certificate if the 8 wellness program offered by the small business provides for all 9 of the following: (1) measurable positive health outcomes, 10 (2) regular health risk factor assessments, (3) tobacco 11 cessation education, (4) weight loss education that addresses 12 both nutrition and physical activity, (5) preventative care 13 education, and (6) disease management services. 14 The department may charge a fee in an amount not to exceed 15 $50 per application for administrative costs and is directed to 16 adopt rules for the issuance of the tax credit certificates. 17 The bill takes effect January 1, 2013, and applies to tax 18 years beginning on or after that date. 19 -5- LSB 5732SC (2) 84 mm/sc 5/ 5