Healthy Workforce Act Is Introduced

A bill that would provide a tax credit to companies offering “effective and comprehensive wellness programs” was introduced in both the House and Senate yesterday. The Healthy Workforce Act (H.R. 1897, S. 803) would amend the Internal Revenue Code (IRC) to provide a credit for 50 percent of the costs employers would incur in implementing such wellness programs for their employees. The bill was introduced by Senators Tom Harkin (D-IA) and John Cornyn (R-TX) and Representatives Earl Blumenauer (D-OR) and Mary Bono Mack (R-CA). Similar legislation was introduced and debated in 2007 but died in committee.

According to information provided by Sen. Harkin, to be eligible for this credit, businesses would need to provide programs that include, among other elements, “health risk assessments, health awareness and behavior change programs, meaningful incentives for program participation and an employee committee that tailors programs to meet workforce needs.” While the current bill has not yet been published, it is likely the same if not substantially similar to the bill introduced in 2007. That bill capped the credit amount at $200 per employee for businesses with fewer than 200 employees, and $100 per employee for those with more than 200 employees.

The House bill has been referred to the House Committee on Ways and Means, and the Senate version to the Senate Committee on Finance.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.