Worksite Wellness Act of 1993

Summary: Worksite Wellness Act of 1993 - Amends the Internal Revenue Code to allow eligible small employers a tax credit for 50 percent of qualified wellness program expenses incurred for their employees.  Makes such credit a part of the general business credit and limits it to $10,000.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Worksite Wellness Act of 1993''.

SEC. 2. STATEMENT OF FINDINGS.

    The Congress hereby finds that--
            (1) more businesses are promoting disease prevention, 
        healthy lifestyles, and good nutrition through wellness 
        programs than did so in the past;
            (2) businesses can save on insurance premiums and reduce 
        the number of health insurance claims filed by their employees 
        if employees would participate in a wellness program;
            (3) wellness programs lead to lower health care costs, 
        reduced absenteeism, increased productivity, and higher morale;
            (4) one of the Healthy People 2000 national health 
        objectives is to have disease prevention and health promotion 
        programs in at least 85 percent of worksites with 50 or more 
        employees;
            (5) a recent survey conducted by the Office of Disease 
        Prevention and Health Promotion reported that 81 percent of 
        companies with 50 or more employees had at least 1 health 
        promotion activity in 1992 compared with 66 percent in 1985; 
        and
            (6) small businesses have less money to devote to employee 
        benefits and therefore shall be given greater incentives to 
        invest in wellness programs for their employees.

SEC. 3. CREDIT FOR EXPENDITURES TO IMPLEMENT HEALTH PROMOTION AND 
              DISEASE REDUCTION PROGRAMS.

    (a) General Rule.--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 thereof the following new 
section:

``SEC. 45A. EXPENDITURES TO IMPLEMENT WELLNESS PROGRAMS FOR EMPLOYEES.

    General Rule.--For purposes of section 38, in the case of an 
eligible small employer, the amount of the wellness program credit 
determined under this section for the taxable year is 50 percent of the 
qualified wellness program expenses paid or incurred by the taxpayer 
during the taxable year.
    ``(b) Limitation.--The credit determined under subsection (a) with 
respect to any eligible small employer for any taxable year shall not 
exceed $10,000.
    ``(c) Eligible Small Employer.--The term `eligible small employer' 
means any employer if--
            ``(1) either--
                    ``(A) the gross receipts of such employer for the 
                preceding taxable year did not exceed $3,500,000, or
                    ``(B) in the case of any employer to which 
                subparagraph (A) does not apply, such employer employee 
                not more than 500 full-time employees during the 
                preceding taxable year, and
            ``(2) such employer elects the application of this section 
        for the taxable year.
For purposes of paragraph (1)(B), an employee shall be considered a 
full-time employee if such employee is employed at least 30 hours per 
week for 20 or more calendar weeks in the calendar year.
    ``(d) Qualified Wellness Program Expenses.--For purposes of this 
section--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `qualified wellness program expenses' 
        means the expenses paid or incurred by the taxpayer in 
        providing services (and other benefits) to employees under a 
        qualified wellness program of the taxpayer.
            ``(2) Depreciation allowances.--For purposes of this 
        subsection, depreciation allowances under section 167 shall be 
        treated as expenses.
            ``(3) Only domestic employment qualified.--Amounts may be 
        taken into account under paragraph (1) with respect to any 
        services only if such services are provided in the United 
        States.
    ``(e) Qualified Wellness Program.--For purposes of this section, 
the term `qualified wellness program' means any separate written plan 
of an employer for the exclusive benefit of his employees if--
            ``(1) such plan provides employees with 1 or more of the 
        following benefits:
                    ``(A) physical fitness or sports programs,
                    ``(B) nutrition or weight control programs,
                    ``(C) programs to reduce use of tobacco, alcohol, 
                or other drugs,
                    ``(D) mental health programs,
                    ``(E) maternal and infant health programs,
                    ``(F) heart disease prevention programs,
                    ``(G) immunization programs, and
                    ``(H) programs for clinical prevention services.
            ``(2) such plan benefits employees who qualify under a 
        classification set up by the employer and found by the 
        Secretary not to be discriminatory in favor of employees who 
        are highly compensated employees (within the meaning of section 
        414(q)) or their dependents, and
            ``(3) such plan does not provide eligible employees with a 
        choice between benefits under such plan and other remuneration 
        includible in gross income.
    ``(f) Special Rules.--
            ``(1) Application of discrimination rules.--For purposes of 
        subsection (e)(2), there shall be excluded from consideration 
        employees not included in the program who are included in a 
        unit of employees covered by an agreement which the Secretary 
        of Labor finds to be a collective bargaining agreement between 
        employee representatives and 1 or more employers.
            ``(2) Certain business practices.--For purposes of 
        subsection (e)(3), the business practices of the employer (as 
        well as the written plan) shall be taken into account.
            ``(3) Certain other rules made applicable.--For purpose of 
        this section, rules similar to the rules of paragraphs (2), 
        (3), (4), (5), and (6) of section 44(d) shall apply.''
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of such Code is amended by striking ``plus'' at the end of 
paragraph (7), by striking the period at the end of paragraph (8) and 
inserting ``, plus'', and by adding at the end thereof the following 
new paragraph:
            ``(9) in the case of an eligible small employer, the 
        wellness program credit determined under section 45A(a).''
    (c) Denial of Double Benefit.--Section 280C of such Code is amended 
by adding at the end thereof the following new subsection:
    ``(d) Credit for Wellness Program Expenses.--No deduction shall be 
allowed for that portion of the qualified wellness program expenses (as 
defined in section 45A(c)) otherwise allowable as a deduction for the 
taxable year which is equal to the amount of the credit determined for 
such taxable year under section 45A(a).''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.