Relates to providing a tax credit to businesses for qualified expenses relating to occupational wellness; provides such credit shall equal, up to one hundred dollars per employee and shall not exceed one hundred thousand dollars per employer, the amount paid by the taxpayer during the taxable year for qualified expenses relating to occupational wellness.
STATE OF NEW YORK
________________________________________________________________________
2862--A
2013-2014 Regular Sessions
IN SENATE
January 24, 2013
___________
Introduced by Sen. SMITH -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations -- recommitted to the Committee on Investigations and
Government Operations in accordance with Senate Rule 6, sec. 8 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the tax law, in relation to providing an occupational
wellness tax credit for businesses; and providing for the repeal of
such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings and intent. The legislature hereby
2 finds that healthier employees experience less absenteeism, greater
3 productivity, better mental performance, and increased job satisfaction,
4 performance and morale.
5 The legislature hereby finds that occupational wellness programs
6 directly prevent the leading causes of premature death and disability in
7 the United States. Furthermore, the vital importance of this issue was
8 recently crystallized by the United States Centers for Disease Control
9 and Prevention (CDC) who earmarked $14 million to study occupational
10 wellness programs.
11 The legislature hereby finds that there is a significant state inter-
12 est in encouraging a proactive approach to preventing illness and inju-
13 ry, as opposed to the traditional reactive, sick-care method. A reorien-
14 tation of our systematic approach to health care is exemplified by
15 United States Senate Bill 2558, the Healthy Lifestyles and Prevention
16 (HeLP) America Act of 2004 and New York State Senate Bill 5774-A of
17 1999-2000, The Wellness and Preventative Health Care Program.
18 The legislature hereby finds that individual studies and evaluations
19 of wellness programs have concluded that such endeavors have dual, rein-
20 forcing, and parallel benefits. In the first instance, employees have
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07238-02-4
S. 2862--A 2
1 become more fit, reduced obesity, lessened stress levels, quit smoking,
2 and achieved other propitious outcomes. Secondarily, wellness programs
3 have increased overall productivity, economic viability, and reduced
4 health care costs.
5 The legislature hereby finds that encouragement of a healthy life-
6 style, while accruing concrete benefits to employees and employers
7 alike, in the final analysis -- empowers individuals, strengthens fami-
8 lies, and promotes a greater quality of life.
9 The legislature intends to ensconce the ethic of a healthy workforce
10 into the fabric of our personal and professional lives, while realizing
11 the tertiary benefits of savings on insurance premiums as the result of
12 reducing the number and instance of health insurance and workers'
13 compensation claims filed by employees.
14 § 2. Agreement for tax credits; application, criteria and require-
15 ments. 1. Application criteria. (a) The department of health shall
16 promulgate an application form for taxpayers to apply for a credit
17 established in subdivision 22-a of section 210 and subsection (xx) of
18 section 606 of the tax law. The application form shall include all
19 relevant information deemed necessary by the commissioner of health.
20 (b) Application. An application submitted in writing to the commis-
21 sioner of health shall include a detailed description of the wellness
22 plan to be implemented. Such description shall include, but not be
23 limited to, the purpose of the plan, target goals, type or nature of
24 plan, estimated cost of plan, expected results and benefits and enunci-
25 ation of a program coordinator as a liaison to the department of health.
26 2. Agreement. After receipt of an application pursuant to subdivision
27 one of this section, the commissioner of health shall enter into an
28 agreement with an applicant for a credit established in subdivision 22-a
29 of section 210 and subsection (xx) of section 606 of the tax law. The
30 agreement shall include, but not be limited to:
31 (a) A requirement that such plan be maintained for the duration of the
32 tax credit.
33 (b) A requirement that the taxpayer shall annually report to the
34 commissioner of health concerning the number of employees participating,
35 costs, benefits, results and any other information the commissioner of
36 health deems necessary to carry out the purposes of this act.
37 (c) A non-compliance with agreement clause. If the commissioner of
38 health determines that a taxpayer who has received credit is not comply-
39 ing with the tax credit agreement, such commissioner shall, after giving
40 the taxpayer an opportunity to remedy non-compliance, terminate the tax
41 credit.
42 (d) Requirements that specify that the credit can only be applied to
43 qualified employees. The credit shall not apply to independent contrac-
44 tors of the taxpayer.
45 3. Requirements. Tax credits shall be awarded by the commissioner of
46 health on a competitive basis in writing within 45 days. Requirements
47 for consideration shall include, but not be limited to:
48 (a) A requirement that priority shall be given to small businesses.
49 (b) A requirement that priority shall be given to new programs.
50 (c) Tax credits shall be awarded on a competitive basis. The commis-
51 sioner of health shall award tax credits on the basis of the strength of
52 the applicants' proposals, as well as the goal of ensuring that wellness
53 and preventive health care programs are distributed across the state.
54 4. Definitions. For the purposes of this section:
S. 2862--A 3
1 (a) "Independent contractor" shall mean an employee who does not work
2 directly under the auspices and purview of the business applying for the
3 credit established in this act.
4 (b) "New program" shall mean a program in a business that did not have
5 an existing wellness program prior to the effective date of this act.
6 (c) "Qualified employee" shall mean an individual, excluding general
7 executive officers, in the case of a corporation, employed for at least
8 35 hours per week and for at least one-half of the taxable year. Such
9 employee shall reside in New York state or work in New York state but
10 reside outside the state and shall not be an independent contractor.
11 (d) "Small businesses" shall mean any corporation, limited liability
12 company or partnership having 100 or less employees.
13 (e) "Taxpayer" means any corporation or any partnership doing business
14 for profit within the state of New York subject to tax under the tax
15 law.
16 § 3. Section 210 of the tax law is amended by adding a new subdivision
17 22-a to read as follows:
18 22-a. Occupational wellness credit. (a) General. A taxpayer shall be
19 allowed a credit, to be computed as provided in this subdivision,
20 against the tax imposed by this article, for providing an occupational
21 wellness program to its employees.
22 (b) Occupational wellness program. An occupational wellness program
23 is a coordinated and systematic organizational endeavor which helps to
24 promote good health, helps to prevent or mitigate acute or chronic sick-
25 ness or disease and minimizes adverse health consequences due to life-
26 style. An occupational wellness program shall include relevant compo-
27 nents, as determined by the department of health, including, but not
28 limited to:
29 (i) providing information and guidance on subjects including, but not
30 limited to, personal and family health, health education, nutrition,
31 physical activity, preventive health care, stress management, smoking
32 cessation, anger management, conflict management, anxiety, depression,
33 sleep disorders, mood disorders, lifestyle patterns, healthy food choic-
34 es, obesity, substance abuse and weight loss;
35 (ii) assessing employee health levels, including, but not limited to,
36 biometrics testing, health screening tests, questionnaires and clinical
37 testing;
38 (iii) encouraging or providing instruction in and opportunity for
39 fitness enhancement activities, including, but not limited to, aerobic
40 exercise, weight bearing exercise, yoga, pilates, muscle stretching or
41 martial arts;
42 (iv) encouraging or providing incentives for employees who regularly
43 engage in physical activity and preventive health care, including, but
44 not limited to, health screenings or memberships with a fitness center;
45 or
46 (v) providing an employee assistance program (EAP). For the purpose
47 of this subparagraph, "employee assistance program" shall mean a program
48 which includes early intervention strategy and counseling for both work
49 and personal problems. An employee assistance program shall offer
50 programs including, but not limited to, counseling to employees who need
51 help with issues related to drugs, alcohol, finances, stress, family
52 problems and other personal problems.
53 (c) Amount of credit. A credit shall be allowed for the amount of
54 expenditures for occupational wellness incurred by an employer. The
55 amount of credit shall not exceed one hundred dollars per employee for
56 whom such programs have been provided during the taxable year in which
S. 2862--A 4
1 such expenditures were made and shall not exceed one hundred thousand
2 dollars per employer per taxable year. Taxpayers shall be required to
3 reapply for the credit established by this subdivision on an annual
4 basis. The department of health shall establish the criteria for which
5 taxpayers shall receive such credit. The department of health may
6 contract with independent organizations to develop criteria for which
7 taxpayers shall receive such credit. The amount of credit issued to all
8 taxpayers combined under this subdivision shall not exceed twenty
9 million dollars annually. Funds not dispersed in a given year shall
10 carry over to the next year.
11 (d) Carryover. The credit allowed under this subdivision for any
12 taxable year shall not reduce the tax due for such year to less than the
13 higher of the amounts prescribed in paragraphs (c) and (d) of subdivi-
14 sion one of this section. Provided, however, if the amount of credit
15 allowable under this subdivision for any taxable year reduces the tax to
16 such amount, any amount of credit not deductible in such taxable year
17 may not be carried over to the following year or years, and may not be
18 deducted from the taxpayer's tax for such year or years.
19 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
20 of the tax law is amended by adding a new clause (xxxvi) to read as
21 follows:
22 (xxxvi) Occupational wellnessAmount of credit under
23 credit undersubdivision twenty-two-a
24 subsection (xx)of section two hundred
25 ten
26 § 5. Section 606 of the tax law is amended by adding a new subsection
27 (xx) to read as follows:
28 (xx) Occupational wellness credit. (1) General. A taxpayer shall be
29 allowed a credit, to be computed as provided in this subsection, against
30 the tax imposed by this article, for providing an occupational wellness
31 program to its employees.
32 (2) Occupational wellness program. An occupational wellness program is
33 a coordinated and systematic organizational endeavor which helps to
34 promote good health, helps to prevent or mitigate acute or chronic sick-
35 ness or disease, and minimizes adverse health consequences due to life-
36 style. An occupational wellness program shall include relevant compo-
37 nents, as determined by the department of health, including, but not
38 limited to:
39 (A) providing information and guidance on subjects including, but not
40 limited to, relating to personal and family health, health education,
41 nutrition, physical activity, preventive health care, stress management,
42 smoking cessation, anger management, conflict management, anxiety,
43 depression, sleep disorders, mood disorders, lifestyle patterns, healthy
44 food choices, obesity, substance abuse and weight loss;
45 (B) assessing and targeting programs addressing employee health risks
46 and needs, including, but not limited to, biometrics testing, health
47 screening tests, questionnaires and clinical testing;
48 (C) encouraging or providing instruction in and opportunity for
49 fitness enhancement activities, including, but not limited to, aerobic
50 exercise, weight bearing exercise, yoga, pilates, muscle stretching or
51 martial arts;
52 (D) encouraging or providing incentives for employees who regularly
53 engage in physical activity and preventive health care, including, but
54 not limited to, health screenings or membership with a fitness center;
55 or
S. 2862--A 5
1 (E) provides an employee assistance program (EAP). For the purpose of
2 this subparagraph, "employee assistance program" shall mean a program
3 which includes early intervention strategy and counseling for both work
4 and personal problems. An employee assistance program shall offer
5 programs including, but not limited to, counseling to employees who need
6 help with issues related to drugs, alcohol, finances, stress, family
7 problems and other personal problems.
8 (3) Amount of credit. A credit shall be allowed for the amount of
9 expenditures for occupational wellness incurred by an employer. The
10 amount of credit shall not exceed one hundred dollars per employee for
11 whom such programs have been provided during the taxable year in which
12 such expenditures were made and shall not exceed one hundred thousand
13 dollars per employer per taxable year. Taxpayers shall be required to
14 reapply for the credit established by this subsection on an annual
15 basis. The department of health shall establish the criteria for which
16 taxpayers shall receive such credit. The department of health may
17 contract with independent organizations to develop criteria for which
18 taxpayers shall receive such credit. The amount of credit issued to all
19 taxpayers combined under this subsection shall not exceed twenty million
20 dollars annually. Funds not dispersed in a given fiscal year shall carry
21 over to the next fiscal year.
22 (4) Carryover. If the amount of credit allowable under this subsection
23 for any taxable year shall exceed the taxpayer's tax for such tax year,
24 the excess may not be carried over to the following year or years, and
25 may not be deducted from the taxpayer's tax for such year or years.
26 § 6. Additional funding. In addition to state funds appropriated for
27 programs under this act, the commissioner of health may accept grants
28 from public or private sources for the program established by this act.
29 The commissioner of health may contract with independent organizations
30 to develop criteria regarding occupational wellness programs.
31 § 7. Reporting requirement. The commissioner of health shall submit an
32 annual report to the governor, the temporary president of the senate,
33 and the speaker of the assembly. Such report shall include an evaluation
34 of how the occupational wellness programs and credits established by
35 this act are functioning and whether this act has been successful in
36 getting more businesses to create occupational wellness programs.
37 § 8. This act shall take effect immediately and shall apply to taxable
38 years beginning on and after the first of January next succeeding the
39 date on which it shall have become a law; provided that the provisions
40 of this act shall expire and be deemed repealed 5 years after such
41 effective date.
