House Bill 1547

AN ACT TO PROVIDE AN INCOME TAX CREDIT TO EMPLOYERS WHO PAY COSTS IN CONNECTION WITH A QUALIFIED WELLNESS PROGRAM IN THE AMOUNT OF 50% OF THE COSTS PAID IN CONNECTION WITH THE QUALIFIED WELLNESS PROGRAM; TO PROVIDE THE COMPONENTS THAT A WELLNESS PROGRAM MUST HAVE TO QUALIFY FOR THE CREDIT; TO PROVIDE THAT IF THE AMOUNT OF THE ALLOWABLE CREDIT EXCEEDS THE INCOME TAX LIABILITY OF THE EMPLOYER, THE AMOUNT OF THE EXCESS SHALL NOT BE REFUNDABLE OR CARRIED FORWARD TO ANY OTHER TAXABLE YEAR; TO LIMIT THE AMOUNT OF THE CREDIT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) A credit is allowed against the taxes imposed by this chapter to an employer who pays costs in connection with a qualified wellness program. The amount of the credit, subject to the limitations set forth under subsection (2) of this section, is an amount equal to fifty percent (50%) of the costs paid in connection with the qualified wellness program.

(2) The amount of credit allowed under this section for any taxable year may not exceed the sum of:

(a) The product of Two Hundred Dollars ($200.00) and the number of eligible employees of the employer not in excess of two hundred (200) eligible employees; plus

(b) The product of One Hundred Dollars ($100.00) and the number of eligible employees of the employer in excess of two hundred (200) eligible employees.

(3) "Qualified wellness program" means a program that consists of at least three (3) of the following components:

(a) A health awareness component, which provides for the dissemination of health information that addresses the specific needs and health risks of employees and opportunity for periodic screenings for health problems and referrals for appropriate follow-up measures.

(b) An employee engagement component, which provides for:

(i) The establishment of a committee to actively engage employees in worksite wellness programs through worksite assessments and program planning, delivery, evaluation and improvement efforts; and

(ii) The tracking of employee participation.

(c) A behavioral change component, which provides for altering employee lifestyles to encourage healthy living through counseling, seminars, online programs, or self-help materials that provide technical assistance and problem-solving skills. This component may include programs relating to tobacco use, obesity, stress management, physical fitness, nutrition, substance abuse, depression and mental health promotion (including anxiety).

(d) A supportive environment component, which includes policies and services at the worksite that promote a healthy lifestyle, including policies relating to:

(i) Tobacco use at the worksite;

(ii) The nutrition of food available at the worksite through cafeterias and vending options;

(iii) Minimizing stress and promoting positive mental health in the workplace;

(iv) Where applicable, accessible and attractive stairs; and

(v) The encouragement of physical activity before, during, and after work hours.

(4) "Eligible employee" means an employee who works an average of not less than twenty-five (25) hours per week during the taxable year.

(5) If the taxpayer is a partnership or Subchapter S corporation, the credit is allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(6) If the amount of the allowable credit exceeds the tax imposed by this chapter, the amount of the excess shall not be refundable or carried forward to any other taxable year.

(7) The Department of Revenue, in cooperation with the Department of Health and the Mississippi Development Authority, shall adopt any rules necessary for the administration of this section.

(8) this section shall be repealed from and after January 1, 2019.

SECTION 2. Section 1 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 3. This act shall take effect and be in force from and after January 1, 2014.