2013 -- H 5736

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

A N A C T

RELATING TO TAXATION -- THE SMALL BUSINESS WELLNESS PROGRAM TAX

CREDIT

     Introduced By: Representatives Ackerman, Serpa, Ruggiero, Craven, and Handy

     Date Introduced: February 28, 2013

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

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adding thereto the following chapter:

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     CHAPTER 68

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THE SMALL EMPLOYER WELLNESS PROGRAM TAX CREDIT

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     44-68-1. Purpose. -- It is the intent of the general assembly that the promotion of

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wellness programs at a place of employment, which can impact the overall health of employees,

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the amount of health expenditures generated by employees and the economic success of a

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business or employer, be supported and encouraged through the tax credit created by this chapter.

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     44-68-2. Tax credit. -- There is hereby established a small employer wellness program

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tax credit, beginning January 1, 2014. The total of all tax credits available to a taxpayer pursuant

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to this section shall not exceed ten thousand dollars ($10,000) in any tax year. A small employer,

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as defined by subsection 27-50-3(kk), that implements a wellness program shall be allowed a

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credit, to be computed as hereinafter provided, against the tax imposed by chapters 11 and 13 of

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this title.

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     (1) The credit allowed under this chapter shall be equal to twenty-five percent (25%) of

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the costs associated with implementing the program, with a maximum credit of ten thousand

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dollars ($10,000) per business in any tax year. The department of health, in consultation with the

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health insurance commissioner, shall determine the criteria for eligibility for the credit, such

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criteria to be set forth in regulations promulgated under this section. The regulations shall require

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proof of using a wellness program qualified pursuant to section 44-68-3 of this chapter. The

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department shall issue a certification to the taxpayer after the taxpayer submits documentation as

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required by the department. The certification shall be acceptable as proof that the expenditures

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related to the implementation of a wellness program for the purposes of the credit allowed under

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this section. 

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     (2) The credit allowed in this chapter for any taxable year shall not reduce the excise tax

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to less than the amount due under chapters 11 and 13 of this title.

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     (3) Wellness program tax credits allowed to a business under this section shall be allowed

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for the taxable year in which the program is implemented. A taxpayer allowed a credit under this

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section for a taxable year may carry over and apply against the taxpayer’s tax liability in any of

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the succeeding five (5) taxable years, the portion, as reduced from year to year, of those credits

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which exceed the tax for the taxable year.

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     44-68-3. Wellness program certification. -- The department of health, in consultation

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with the health insurance commissioner, shall provide a seal of approval to wellness programs

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implemented by small employers. In developing criteria for a wellness seal of approval, the

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department shall consider:

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     (1) Whether the program provides new or innovative services;

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     (2) The participation rate by employees;

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     (3) The quality of the health education being provided;

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     (4) Whether the program promotes health screenings and other preventive health care

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measures; and

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     (5) Whether the program promotes a healthy workplace environment.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- THE SMALL BUSINESS WELLNESS PROGRAM TAX

CREDIT

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     This act would create a tax credit program for small employers that implement a wellness

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program for employees, subject to standards set by the department of health.

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     This act would take effect upon passage.

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