Note: The EWPC expired, and was no longer available to employers for taxable years beginning after December 31, 2017. However, as discussed below, certain unused (i.e., carried over) EWPC previously granted to personal income or corporate excise taxpayers are still available to be claimed against corporate excise or personal income tax incurred during tax years up until the period beginning on January 1, 2023.
The EWPC was available to certain employers that were personal income and corporate excise taxpayers in Massachusetts.
The goal of the EWPC was to provide businesses with 200 or fewer employees with a greater opportunity to implement wellness programs. The credit was equal to 25% of the costs incurred by employers (both personal income and corporate excise taxpayers) that were associated with implementing a “certified wellness program.”
Business wellness programs have resulted in:
- Savings on health insurance premiums
- Overall savings to the cost of health care
In order to qualify for the credit, employers were required to submit an application to the Department of Public Health (DPH), which:
- Described the proposed wellness program and
- Provided an estimated budget and applicable taxpayer identification number
If approved, the DPH issued a certificate with the dollar amount of credit awarded. The taxpayer must provide this certificate when claiming the credit on a tax return. A taxpayer can’t claim more than $10,000 of the EWPC in one tax year.
Maximum Excise, Carryover, and Cap
The EWPC isn’t transferable and it wasn't refundable.
The EWPC may not reduce the corporate excise tax due below $456.
The maximum amount of credits cannot exceed 50% of an employer's corporate excise, otherwise allowable in one tax year to a corporation.
Any unused credits could be carried forward for 5 tax years from the date of the award.
The credit expired on December 31, 2017, and it was not extended by the Legislature.
For more information, details on how amounts are calculated, and important definitions, please see:
- Massachusetts General Laws Chapter 62, Section 6N (Personal income)
- Massachusetts General Laws Chapter 63, Section 38FF (Corporate excise)
- 105 Code of Massachusetts Regulations 216
Page updated: August 7, 2020.