Senate
Study
Bill
1174
-
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:
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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
qualified
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
qualified
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.
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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
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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
.
422.11E
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
2013,
is
amended
by
adding
the
31
following
new
subsection:
32
NEW
SUBSECTION
.
30.
The
taxes
imposed
under
this
division
33
shall
be
reduced
by
a
wellness
program
tax
credit
allowed
under
34
section
135.27B.
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_____
Sec.
4.
Section
422.60,
Code
2013,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
12.
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
2013,
is
amended
9
by
adding
the
following
new
paragraph:
10
NEW
PARAGRAPH
.
k.
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
2014.
15
Sec.
8.
APPLICABILITY.
This
Act
applies
to
tax
years
16
beginning
on
or
after
January
1,
2014.
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
qualified
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
qualified
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
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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
wellness
program
tax
credit,
a
taxpayer
must
4
attach
a
tax
credit
certificate
issued
by
the
department
of
5
public
health
verifying
the
taxpayer’s
eligibility
for
the
6
credit.
The
department
will
issue
a
tax
credit
certificate
if
7
the
wellness
program
offered
by
the
small
business
provides
for
8
all
of
the
following:
(1)
measurable
positive
health
outcomes,
9
(2)
regular
health
risk
factor
assessments,
(3)
tobacco
10
cessation
education,
(4)
weight
loss
education
that
addresses
11
both
nutrition
and
physical
activity,
(5)
preventative
care
12
education,
and
(6)
disease
management
services.
13
The
department
may
charge
a
fee
in
an
amount
not
to
exceed
14
$50
per
application
for
administrative
costs
and
is
directed
to
15
adopt
rules
for
the
issuance
of
the
tax
credit
certificates.
16
The
bill
takes
effect
January
1,
2014,
and
applies
to
tax
17
years
beginning
on
or
after
that
date.
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