Report Title:

Taxes; Worksite wellness program

Description:

Adds a new income tax credit for taxpayers with employee worksite wellness programs.

HOUSE OF REPRESENTATIVES

H.B. NO.

1733

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

rELATING TO TAXES.

 

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

SECTION 1. The legislature finds that fit and healthy employees experience less absenteeism, greater productivity, and better mental performance and morale. They also use fewer health care services and incur fewer related costs, thereby reducing the number of health insurance and workers' compensation claims.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"235- Worksite wellness income tax credit. (a) There shall be allowed to each taxpayer subject to the taxes imposed by this chapter, a worksite wellness tax credit which shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed. The amount of the credit shall be one hundred per cent of the program costs incurred during the taxable year, and shall be limited to $100 per employee of the taxpayer. The taxpayer shall be allowed a maximum credit of $5,000.

(b) In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for program costs incurred by the entity for the taxable year. The cost upon which the tax credit is computed shall be determined at the entity level.

(c) The credit allowed under this section shall be claimed against the net income tax liability for the taxable year. If the tax credit under this section exceeds the taxpayer's income tax liability, the excess credit over liability shall not be refunded to the taxpayer and shall not be used as a credit against the taxpayer's income tax liability in subsequent years.

(d) All claims for a tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(e) The director of taxation shall prepare forms as may be necessary to claim a credit under this section. The director may also require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

(f) The tax credit allowed under this section shall be available for taxable years beginning after December 31, 2003.

(g) As used in this section:

"Net income tax liability" means income tax liability reduced by all other credits allowed under this chapter.

"Program costs" means costs incurred by the taxpayer after December 31, 2003, to implement, coordinate, equip, operate, maintain, and support a worksite wellness program.

"Worksite wellness program" means any program that:

(1) Provides information and guidance on subjects relating to personal and family health, health education, nutrition, physical activity, preventive health care, stress management, and weight loss;

(2) Assesses employee health levels, including biometrics testing;

(3) Encourages or provides instruction in and opportunity for fitness enhancement activities, including but not limited to aerobic exercise, weight bearing exercise, yoga, pilates, muscle stretching, or martial arts; or

(4) Encourages or provides incentives for employees who regularly engage in physical activity and preventive health care, including but not limited to health screenings or membership with a fitness center."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2003.

INTRODUCED BY:

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