Citations Affected: IC 5-10-16; IC 6-3.1-31.
Synopsis: Employee wellness programs. Requires a public employer
to provide a wellness program for the public employer's employees.
Provides a tax credit for a taxpayer that provides a wellness program to
Effective: July 1, 2007; January 1, 2008.
January 23, 2007, read first time and referred to Committee on Public Health.
A BILL FOR AN ACT to amend the Indiana Code concerning
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]:
Chapter 31. Employee Wellness Program Tax Credit
Sec. 1. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company; or
(4) a limited liability partnership.
Sec. 2. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(2) IC 6-5.5 (the financial institutions tax); and
(3) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
Sec. 3. As used in this chapter, "taxpayer" means an individual or entity that has any state tax liability.
Sec. 4. As used in this chapter, "wellness program" means a program that rewards:
(1) overweight employees for losing weight and all employees for maintaining a healthy weight; or
(2) employees for not using tobacco.
Sec. 5. A taxpayer is entitled to a credit against the taxpayer's state tax liability for a taxable year in an amount equal to fifty percent (50%) of the costs incurred by the taxpayer during the taxable year for providing a wellness program for the taxpayer's employees during the taxable year.
Sec. 6. If a pass through entity is entitled to a credit under section 5 of this chapter but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, or member of the pass through entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for the taxable year; multiplied by
(2) the percentage of the pass through entity's distributive income to which the shareholder, partner, or member is entitled.
Sec.7. (a) If the credit provided by this chapter exceeds the taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried forward to
succeeding taxable years and used as a credit against the
taxpayer's state tax liability during those taxable years. Each time
that the credit is carried forward to a succeeding taxable year, the
credit is to be reduced by the amount that was used as a credit
during the immediately preceding taxable year.
(b) A taxpayer is not entitled to any carryback or refund of any unused credit.
Sec. 8. To receive the credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's state tax return or returns in the manner prescribed by the department. The taxpayer shall submit to the department all information that the department determines is necessary for the calculation of the credit provided by this chapter.