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.
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.
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:
- Massachusetts General Laws Chapter 62, Section 6N (Personal income)
- Massachusetts General Laws Chapter 63, Section 38FF (Corporate excise)
- 105 Code of Massachusetts Regulations 216.