SENATE DOCKET, NO. 763        FILED ON: 1/16/2019

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1706

The Commonwealth of Massachusetts

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PRESENTED BY:

Jason M. Lewis

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to extending the wellness program tax credit.

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PETITION OF:

SENATE DOCKET, NO. 763        FILED ON: 1/16/2019

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1706

The Commonwealth of Massachusetts

_______________

In the One Hundred and Ninety-First General Court
(2019-2020)

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An Act relative to extending the wellness program tax credit.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1:  Chapter 62 of the General Laws as most recently appearing in the 2016 Official Edition, is hereby amended by inserting after section 6N the following new section:-

Section 6O (a) The purpose of this section shall be to provide incentives for business to recognize the benefits of wellness programs and provide the Commonwealth the opportunity to evaluate the health benefits of employer wellness programs. Wellness programs implemented by business have resulted in both savings to their premiums as well as overall savings to the cost of health care. The goal of this tax credit is to provide smaller businesses with an expanded opportunity to implement these programs, and a mechanism for the Commonwealth to assess programming benefits.

(b) There is hereby established a Massachusetts wellness program tax credit. The total of all tax credits available to a taxpayer pursuant to this section or section 38FG of chapter 63 shall not exceed $10,000 in any 1 tax year. A business that implements a wellness program shall be allowed a credit, to be computed as hereinafter provided, against taxes owed to the commonwealth under chapter 62 or chapter 63 or other applicable law. For the purposes of this section, ''businesses'' shall include professions, sole proprietorships, trades, businesses, or partnerships.

(c) The credit allowed under this chapter shall be equal to 25 per cent of the costs associated with implementing a program certified under section 206A of chapter 111, with a maximum credit of $10,000 per business in any 1 fiscal year. The department of public health shall determine the criteria for eligibility for the credit, the criteria to be set forth in regulations promulgated under this section and section 206A of chapter 111. The regulations shall require proof of using a wellness program qualified under section 206A of chapter 111. The department shall issue a certification to the taxpayer after the taxpayer submits documentation as required by the department. Such certification shall be acceptable as proof that the expenditures related to the implementation of a wellness program for the purposes of the credit allowed under this section.

(d) Wellness program tax credits allowed to a business under this section shall be allowed for the taxable year in which the program is implemented; provided, however, that a tax credit allowed under this section shall not reduce the tax owed below zero. A taxpayer allowed a credit under this section for a taxable year may carry over and apply against such taxpayer's tax liability in any of the succeeding 5 taxable years, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year.

(e) The department of public health shall consult with the department of revenue and individuals from various business and health care organizations from Massachusetts, including but not limited to; the Associated Industries of Massachusetts, the Massachusetts Society of Certified Public Accountants, the Massachusetts chapter of the International Health, Racquet and Sportsclub Association, the Massachusetts Association of Health Plans, the Massachusetts chapter of the National Federation of Independent Businesses; the Massachusetts Taxpayer Foundation, and the Smaller Business Association of New England on the promotion of the program to eligible entities. 

(f) The department of public health shall set health and economic outcome goals for the wellness program tax credit, including but not limited to (i) program participation increase of 25% per year, (ii) slowed increase in employer health costs (iii) improvements in employee well-being, and quality of life, and (iv) growth in existing employee wellness programs.  The department of public health in consultation with the department of revenue shall study the health and economic outcomes of the program and file a report, together with any recommendations regarding whether there should be legislative changes to the tax credit or whether the health and economic goals of the program can better be served through other means, to the clerks of the house of representatives and senate, chairs of the house and senate committees on ways and means, the house and senate chairs of the joint committee on health care financing, the house and senate chairs of the joint committee on public health and the secretary of the executive office of administration and finance on or before December 1 of each calendar year.

SECTION 2:  Chapter 63 of the General Laws as most recently appearing in the 2016 Official Edition, is hereby amended by inserting after section 38FF the following new section:-Section 38FG:-

(a) The purpose of this section shall be to provide incentives for business to recognize the benefits of wellness programs and provide the Commonwealth the opportunity to evaluate the health benefits of employer wellness programs. Wellness programs implemented by business have resulted in both savings to their premiums as well as overall savings to the cost of health care. The goal of this tax credit is to provide smaller businesses with an expanded opportunity to implement these programs, and a mechanism for the Commonwealth to assess programming benefits.

(b) There is hereby established a Massachusetts wellness program tax credit. The total of all tax credits available to a taxpayer pursuant to this section or section 6O of chapter 62 shall not exceed $10,000 in any 1 tax year. A business that implements a wellness program shall be allowed a credit, to be computed as hereinafter provided, against taxes owed to the commonwealth under chapter 62 or chapter 63 or other applicable law. For the purposes of this section, ''businesses'' shall include professions, sole proprietorships, trades, businesses or partnerships.

(c) The credit allowed under this chapter shall be equal to 25 per cent of the costs associated with implementing the program, with a maximum credit of $10,000 per business in any 1 fiscal year. The department of public health shall determine the criteria for eligibility for the credit, such criteria to be set forth in regulations promulgated under this section. The regulations shall require proof of using a wellness program qualified under section 206A of chapter 111. The department shall issue a certification to the taxpayer after the taxpayer submits documentation as required by the department. The certification shall be acceptable as proof that the expenditures related to the implementation of a wellness program for the purposes of the credit allowed under this section.

(d) The credit allowed in this chapter for any taxable year shall not reduce the excise to less than the amount due under subsection (b) of section 39, section 67 or any other applicable section.

(e) Wellness program tax credits allowed to a business under this section shall be allowed for the taxable year in which the program is implemented. A taxpayer allowed a credit under this section for a taxable year may carry over and apply against the taxpayer's tax liability in any of the succeeding 5 taxable years, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year.

(f) The department of public health shall consult with the department of revenue and individuals from various business and health care organizations from Massachusetts, including but not limited to; the Associated Industries of Massachusetts, the Massachusetts Society of Certified Public Accountants, the Massachusetts chapter of the International Health, Racquet and Sportsclub Association, the Massachusetts Association of Health Plans, the Massachusetts chapter of the National Federation of Independent Businesses; the Massachusetts Taxpayer Foundation, and the Smaller Business Association of New England on the promotion of the program to eligible entities. 

(g) The department of public health shall set health and economic outcome goals for the wellness program tax credit, including but not limited to (i) program participation increase of 25% per year, (ii) slowed increase in employer health costs (iii) improvements in employee well-being, and quality of life, and (iv) growth in existing employee wellness programs.  The department of public health in consultation with the department of revenue shall study the health and economic outcomes of the program and file a report, together with any recommendations regarding whether there should be legislative changes to the tax credit or whether the health and economic goals of the program can better be served through other means, to the clerks of the house of representatives and senate, chairs of the house and senate committees on ways and means, the house and senate chairs of the joint committee on health care financing, the house and senate chairs of the joint committee on public health and the secretary of the executive office of administration and finance on or before December 1 of each calendar year.

SECTION 3: Notwithstanding any general or special law to the contrary, the commissioner of revenue, in consultation with the department of public health, shall authorize annually an amount not to exceed $1,000,000 for the wellness program tax credit in section 6O of chapter 62 of the General Laws together with chapter 38FG of chapter 63 of the General Laws.

SECTION 4: Section 6O of chapter 62 General Laws together with chapter 38FG of chapter 63 of the General Laws shall expire on December 31, 2022.