HOUSE BILL 541
49th legislature - STATE OF NEW MEXICO - first session, 2009
INTRODUCED BY
Danice Picraux
AN ACT
RELATING TO TAXATION; PROVIDING INCOME TAX CREDITS FOR EMPLOYERS FOR A PORTION OF THE COSTS OF PROVIDING WELLNESS PROGRAMS FOR EMPLOYEES; ENACTING SECTIONS OF THE NMSA 1978.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Income Tax Act is enacted to read:
"[NEW MATERIAL] CREDIT--WELLNESS PROGRAM PROVIDED BY EMPLOYER.--
A. The tax credit provided by this section may be referred to as the "wellness program tax credit". For taxable years beginning on or after January 1, 2009 but prior to January 1, 2019, a taxpayer who is an employer of two hundred or fewer employees and who files an individual New Mexico income tax return may claim a credit in an amount equal to fifty percent of the amount expended by the taxpayer in a taxable year for a qualified wellness program for the taxpayer's employees who are residents of New Mexico; provided that the credit allowed under this section for any taxable year shall not exceed the product of one hundred fifty dollars ($150) multiplied by the number of employees who are residents of New Mexico, not to exceed two hundred employees.
B. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the credit that would have been allowed on a joint return.
C. A taxpayer who otherwise qualifies and claims a credit pursuant to Subsection A of this section and who is a member of a partnership or business entity that is the employer incurring expenditures for wellness programs may claim a credit only in proportion to the taxpayer's interest in the partnership or business entity. The total credit claimed by all members of the partnership or business entity shall not exceed the amount of the tax credit that could have been claimed by a sole employer. A taxpayer claiming a tax credit for a taxable year pursuant to this section shall not claim a wellness program tax credit pursuant to the Corporate Income and Franchise Tax Act for that same taxable year.
D. The credit provided in this section may only be deducted from the taxpayer's income tax liability for the taxable year for which the credit is claimed.
E. A taxpayer may apply for certification of eligibility for the wellness program tax credit from the department of health. If the department of health determines that the taxpayer meets the requirements of this section and rules adopted by the department of health to administer the provisions of this section, it may issue a certificate of eligibility to the taxpayer. To be eligible for the wellness program tax credit, the taxpayer must provide to the taxation and revenue department a certificate of eligibility issued by the department of health.
F. As used in this section, "qualified wellness program" means a program implemented by an employer for employees that contains the following four components:
(1) a health awareness component that provides for:
(a) the dissemination of health information that addresses the specific needs and health risks of the employee; or
(b) the opportunity for periodic screenings for health problems and referrals for appropriate follow-up measures;
(2) an employee engagement component that provides for:
(a) incentives for employee participation;
(b) the tracking of employee participation; or
(c) the establishment of a committee to engage employees actively in workplace wellness programs through workplace assessments and program planning, delivery, evaluation and improvement efforts;
(3) a behavioral change component that 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. The component may include programs relating to:
(a) tobacco use;
(b) obesity;
(c) stress management;
(d) physical fitness;
(e) nutrition;
(f) substance abuse;
(g) depression; or
(h) mental health promotion; and
(4) a supportive environment component that includes:
(a) policies and services at the workplace that promote a healthy lifestyle, including policies and services relating to: 1) tobacco use at the workplace; 2) the nutrition of food available at the workplace through cafeterias and vending machines; 3) minimizing stress and promoting positive mental health in the workplace; 4) where applicable, the provision of accessible and attractive stairs; or 5) the encouragement of physical activity before, during and after work hours; or
(b) benefits as incentives for each employee who participates in: 1) the health screenings described in this subsection; or 2) the behavioral change programs described in this subsection.
G. The department of health, in consultation with the taxation and revenue department, the workforce solutions department and the New Mexico health policy commission, shall adopt rules necessary to effectuate the provisions of this section."
Section 2. A new section of the Corporate Income and Franchise Tax Act is enacted to read:
"[NEW MATERIAL] CREDIT--WELLNESS PROGRAM PROVIDED BY EMPLOYER.--
A. The tax credit provided by this section may be referred to as the "wellness program tax credit". For taxable years beginning on or after January 1, 2009 but prior to January 1, 2019, a taxpayer that is an employer of two hundred or fewer employees and that files a corporate income tax return may claim a credit in an amount equal to fifty percent of the amount expended by the taxpayer in a taxable year for a qualified wellness program for the taxpayer's employees who are residents of New Mexico; provided that the credit allowed under this section for any taxable year shall not exceed the product of one hundred fifty dollars ($150) multiplied by the number of employees who are residents of New Mexico not to exceed two hundred employees.
B. A taxpayer that otherwise qualifies and claims a credit pursuant to Subsection A of this section and that is a member of a partnership or business entity that is the employer incurring expenditures for wellness programs may claim a credit only in proportion to the taxpayer's interest in the partnership or business entity. The total credit claimed by all members of the partnership or business entity shall not exceed the amount of the tax credit that could have been claimed by a sole employer. A taxpayer claiming a tax credit for a taxable year pursuant to this section shall not claim a wellness program tax credit pursuant to the Income Tax Act for that same taxable year.
C. The credit provided in this section may only be deducted from the taxpayer's corporate income tax liability for the taxable year for which the credit is claimed.
D. A taxpayer may apply for certification of eligibility for the wellness program tax credit from the department of health. If the department of health determines that the taxpayer meets the requirements of this section and rules adopted by the department of health to administer the provisions of this section, it may issue a certificate of eligibility to the taxpayer. To be eligible for the wellness program tax credit, the taxpayer must provide to the taxation and revenue department a certificate of eligibility issued by the department of health.
E. As used in this section, a "qualified wellness program" means a program implemented by an employer for employees that contains the following four components:
(1) a health awareness component that provides for:
(a) the dissemination of health information that addresses the specific needs and health risks of employees; or
(b) the opportunity for periodic screenings for health problems and referrals for appropriate follow-up measures;
(2) an employee engagement component that provides for:
(a) incentives for employee participation;
(b) the tracking of employee participation; or
(c) the establishment of a committee to engage employees actively in workplace wellness programs through workplace assessments and program planning, delivery, evaluation and improvement efforts;
(3) a behavioral change component that 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. The component may include programs relating to:
(a) tobacco use;
(b) obesity;
(c) stress management;
(d) physical fitness;
(e) nutrition;
(f) substance abuse;
(g) depression; or
(h) mental health promotion; and
(4) a supportive environment component that includes:
(a) policies and services at the workplace that promote a healthy lifestyle, including policies and services relating to: 1) tobacco use at the workplace; 2) the nutrition of food available at the workplace through cafeterias and vending machines; 3) minimizing stress and promoting positive mental health in the workplace; 4) where applicable, the provision of accessible and attractive stairs; or 5) the encouragement of physical activity before, during and after work hours; or
(b) benefits as incentives for each employee who participates in: 1) the health screenings described in this subsection; or 2) the behavioral change programs described in this subsection.
F. The department of health, in consultation with the taxation and revenue department, the workforce solutions department and the New Mexico health policy commission, shall adopt rules necessary to effectuate the provisions of this section."
Section 3. APPLICABILITY.--The provisions of this act are applicable to taxable years beginning on or after January 1, 2009 but prior to January 1, 2019.
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