1.This Act may be cited as the
Healthy Workforce Act of
2007
.
2.Congress finds the following:
(1)The United States
has more than 12 million employers and approximately 135 million working
adults.
(2)The use of
effective worksite policies and programs can reduce health risks and improve
the quality of life for the 135 million full-time and part-time workers in the
United States.
(3)Workers spend
more than one-third of their day on the job and, as a result, employers are in
a unique position to promote the health and safety of their employees.
(4)Chronic diseases
such as heart disease, stroke, cancer, obesity, and diabetes are among the most
prevalent and costly worker health problems for most employers.
(5)The use by
employers of effective worksite policies and programs can reduce health risks
and improve the quality of life for their employees.
(6)The good health
of workers is good for business because healthier workers miss less work, are
more productive, and have lower health care costs.
3.Tax credit to
employers for costs of implementing wellness programs
(a)Subpart D of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to business related credits) is amended
by adding at the end the following:
45O.
(a)
(1)For purposes of section 38, the wellness program credit
determined under this section for any taxable year during the credit period
with respect to an employer is an amount equal to 50 percent of the costs paid
or incurred by the employer in connection with a qualified wellness program
during the taxable year.
(2)The
amount of credit allowed under paragraph (1) for any taxable year shall not
exceed the sum of—
(A)the product of
$200 and the number of employees of the employer not in excess of 200
employees, plus
(B)the product of
$100 and the number of employees of the employer in excess of 200
employees.
(b)Qualified
wellness programFor purposes of this section—
(1)Qualified
wellness programThe term qualified wellness program
means a program which—
(A)consists of any 3
of the wellness program components described in subsection (c), and
(B)which is
certified by the Secretary of Health and Human Services, in coordination with
the Director of the Center for Disease Control and Prevention, as a qualified
wellness program under this section.
(2)Programs must
be consistent with research and best practices
(A)The Secretary of Health and Human Services shall not
certify a program as a qualified wellness program unless the program—
(i)is consistent
with evidence-based research and best practices, as identified by persons with
expertise in employer health promotion and wellness programs,
(ii)includes
multiple, evidence-based strategies which are based on the existing and
emerging research and careful scientific reviews, including the Guide to
Community Preventive Services, the Guide to Clinical Preventive Services, and
the National Registry for Effective Programs, and
(iii)includes
strategies which focus on employee populations with a disproportionate burden
of health problems.
(B)Periodic
updating and reviewThe Secretary of Health and Human Services
shall establish procedures for periodic review of programs under this
subsection. Such procedures shall require revisions of programs if necessary to
ensure compliance with the requirements of this section and require updating of
the programs to the extent the Secretary, in coordination with the Director of
the Centers for Disease Control and Prevention, determines necessary to reflect
new scientific findings.
(3)The Secretary of Health and Human Services shall, as
part of the certification process, encourage employees to make the programs
culturally competent and to meet the health literacy needs of the employees
covered by the programs.
(c)Wellness
program componentsFor purposes of this section, the wellness
program components described in this subsection are the following:
(1)Health
awareness componentA health awareness component which provides
for the following:
(A)The dissemination of health information which addresses
the specific needs and health risks of employees.
(B)The opportunity for periodic screenings for health
problems and referrals for appropriate follow up measures.
(2)Employee
engagement componentAn employee engagement component which
provides for—
(A)the establishment
of a committee to actively engage employees in worksite wellness programs
through worksite assessments and program planning, delivery, evaluation, and
improvement efforts, and
(B)the tracking of
employee participation.
(3)Behavioral
change componentA behavioral change component which provides for
altering employee lifestyles to encourage healthy living through counseling,
seminars, on-line programs, or self-help materials which provide technical
assistance and problem solving skills. Such component may include programs
relating to—
(A)tobacco
use,
(B)obesity,
(C)stress
management,
(D)physical
fitness,
(E)nutrition,
(F)substance
abuse,
(G)depression,
and
(H)mental health
promotion (including anxiety).
(4)Supportive
environment componentA supportive environment component which
includes the following:
(A)Policies and services at the worksite which promote a
healthy lifestyle, including policies relating to—
(i)tobacco use at
the worksite,
(ii)the nutrition of
food available at the worksite through cafeterias and vending options,
(iii)minimizing
stress and promoting positive mental health in the workplace,
(iv)where
applicable, accessible and attractive stairs, and
(v)the encouragement
of physical activity before, during, and after work hours.
(B)
(i)Qualified incentive benefits for each employee who
participates in the health screenings described in paragraph (1)(B) or the
behavioral change programs described in paragraph (3).
(ii)Qualified
incentive benefitFor purposes of clause (i), the term
qualified incentive benefit means any benefit which is approved by
the Secretary of Health and Human Services, in coordination with the Director
of the Centers for Disease Control and Prevention. Such benefit may include an
adjustment in health insurance premiums or co-pays.
(C)The opportunity for employees to participate in the
management of any qualified wellness program to which this section
applies.
(d)Participation
requirement
(1)No credit shall be allowed under subsection (a) unless
the Secretary of Health and Human Services, in coordination with the Director
of the Centers for Disease Control and Prevention, certifies, as a part of any
certification described in subsection (b), that each wellness program component
of the qualified wellness program applies to all qualified employees of the
employer. The Secretary of Health and Human Services shall prescribe rules
under which an employer shall not be treated as failing to meet the
requirements of this subsection merely because the employer provides
specialized programs for employees with specific health needs or unusual
employment requirements or provides a pilot program to test new wellness
strategies.
(2)For purposes of paragraph (1), the term qualified
employee means an employee who works an average of not less than 25
hours per week during the taxable year.
(e)Other
definitions and special rulesFor purposes of this
section—
(1)
(A)Partners and
partnershipsThe term employee includes a partner
and the term employer includes a partnership.
(B)Rules similar to the rules of section 52 shall
apply.
(2)Certain costs
not includedCosts paid or incurred by an employer for food or
health insurance shall not be taken into account under subsection (a).
(3)No credit where
grant awardedNo credit shall be allowable under subsection (a)
with respect to any qualified wellness program of any taxpayer (other than an
eligible employer described in subsection (f)(2)(A)) who receives a grant
provided by the United States, a State, or a political subdivision of a State
for use in connection with such program. The Secretary shall prescribe rules
providing for the waiver of this paragraph with respect to any grant which does
not constitute a significant portion of the funding for the qualified wellness
program.
(4)
(A)The term credit period means the period of
10 consecutive taxable years beginning with the taxable year in which the
qualified wellness program is first certified under this section.
(B)Special rule
for existing programsIn the case of an employer (or predecessor)
which operates a wellness program for its employees on the date of the
enactment of this section, subparagraph (A) shall be applied by substituting
3 consecutive taxable years
for 10 consecutive taxable
years
. The Secretary shall prescribe rules under which this subsection
shall not apply if an employer is required to make substantial modifications in
the existing wellness program in order to qualify such program for
certification as a qualified wellness program.
(C)For purposes of this paragraph, all persons treated as a
single employer under subsection (b), (c), (m), or (o) of section 414 shall be
treated as a single employer.
(f)Portion of
credit made refundable
(1)In the case of an eligible employer of an employee, the
aggregate credits allowed to a taxpayer under subpart C shall be increased by
the lesser of—
(A)the credit which
would be allowed under this section without regard to this subsection and the
limitation under section 38(c), or
(B)the amount by
which the aggregate amount of credits allowed by this subpart (determined
without regard to this subsection) would increase if the limitation imposed by
section 38(c) for any taxable year were increased by the amount of employer
payroll taxes imposed on the taxpayer during the calendar year in which the
taxable year begins.
The amount
of the credit allowed under this subsection shall not be treated as a credit
allowed under this subpart and shall reduce the amount of the credit otherwise
allowable under subsection (a) without regard to section 38(c).(2)For purposes of this subsection, the term eligible
employer means an employer which is—
(A)a State or
political subdivision thereof, the District of Columbia, a possession of the
United States, or an agency or instrumentality of any of the foregoing,
or
(B)any organization
described in section 501(c) of the Internal Revenue Code of 1986 which is
exempt from taxation under section 501(a) of such Code.
(3)For purposes of this subsection—
(A)The term employer payroll taxes means the
taxes imposed by—
(i)section 3111(b),
and
(ii)sections 3211(a)
and 3221(a) (determined at a rate equal to the rate under section
3111(b)).
(B)A rule similar to the rule of section 24(d)(2)(C) shall
apply for purposes of subparagraph (A).
(g)This
section shall not apply to any amount paid or incurred after December 31,
2017.
.
(b)Treatment as
general business creditSubsection (b) of section 38 of the
Internal Revenue Code of 1986 (relating to general business credit) is amended
by striking plus
at the end of paragraph (30), by striking the
period at the end of paragraph (31) and inserting , plus
, and by
adding at the end the following:
(32)the wellness
program credit determined under section
45O.
.
(c)Section 280C of the Internal Revenue Code of 1986
(relating to certain expenses for which credits are allowable) is amended by
adding at the end the following new subsection:
(f)
(1)No deduction shall be allowed for that portion of the
costs paid or incurred for a qualified wellness program (within the meaning of
section 45O) allowable as a deduction for the taxable year which is equal to
the amount of the credit allowable for the taxable year under section
45O.
(2)Similar rule
where taxpayer capitalizes rather than deducts
expensesIf—
(A)the amount of the
credit determined for the taxable year under section 45O, exceeds
(B)the amount
allowable as a deduction for such taxable year for a qualified wellness
program,
the amount
chargeable to capital account for the taxable year for such expenses shall be
reduced by the amount of such excess.(3)In the case of a corporation which is a member of a
controlled group of corporations (within the meaning of section 41(f)(5)) or a
trade or business which is treated as being under common control with other
trades or business (within the meaning of section 41(f)(1)(B)), this subsection
shall be applied under rules prescribed by the Secretary similar to the rules
applicable under subparagraphs (A) and (B) of section
41(f)(1).
.
(d)The table of sections for subpart D of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by
adding at the end the following:
Sec. 45O. Wellness program
credit.
.
(e)The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.
(f)
(1)The Secretary of the Treasury, in conjunction with the
Director of the Centers for Disease Control and members of the business
community, shall institute an outreach program to inform businesses about the
availability of the wellness program credit under section 45O of the Internal
Revenue Code of 1986 as well as to educate businesses on how to develop
programs according to recognized and promising practices and on how to measure
the success of implemented programs.
(2)Authorization
of appropriationsThere are authorized to be appropriated such
sums as are necessary to carry out the outreach program described in paragraph
(1).