Employer Wellness Program Credit (EWPC)

Learn about a credit for employers that implement a “certified wellness program” for its employees.

Overview

The EWPC may be available for personal income and corporate excise taxpayers in Massachusetts.

The goal of the EWPC is to provide businesses with 200 or fewer employees with a greater opportunity to implement these wellness programs. The credit is equal to 25% of the costs associated with implementing a “certified wellness program.”

Business wellness programs have resulted in:

  • Savings on premiums  
  • Overall savings to the cost of health care.

Eligibility

To qualify, for the credit an employer must submit an application to the Department of Public Health (DPH):

  • Describing the proposed wellness program and
  • Providing an estimated budget and applicable taxpayer identification number.

If approved, the DPH will issue a certificate with the dollar amount of credit awarded. The taxpayer will have to 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 credit isn’t transferable or refundable.

The EWPC may not reduce the corporate excise tax due below $456.

The maximum amount of credits may not exceed 50% of its excise, otherwise allowable in one tax year to a corporation.

Any unused credits may be carried forward for the next 5 tax years.

The current yearly cap of the EWPC is $15,000,000.

Additional information

The credit is set to expire on December 31, 2017, unless extended by the Legislature.

For more information, details on how amounts are calculated, and important definitions, please see:

Feedback

Tell us what you think