I 

111TH CONGRESS 

1ST SESSION H. R. 3490 

To amend the Internal Revenue Code of 1986 to provide tax incentives 

for employer-provided wellness programs. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 31, 2009 

Mr. JOHNSON of Illinois (for himself and Mr. ABERCROMBIE) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

tax incentives for employer-provided wellness programs. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. WELLNESS PROGRAM EMPLOYER CREDIT. 

4 (a) IN GENERAL.—Subpart D of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to business related credits) is amended by 

7 inserting after section 45Q the following new section: 

8 ‘‘SEC. 45R. WELLNESS PROGRAM EMPLOYER CREDIT. 

9 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

10 the wellness program employer credit determined under 


tjames on DSKG8SOYB1PROD with BILLS
2 

•HR 3490 IH

1 this section for any taxable year is an amount equal to 

2 30 percent of the expenses paid or incurred by the eligible 

3 employer during the taxable year to develop and imple4 ment a qualified wellness program. 

5 ‘‘(b) DOLLAR LIMITATION.—The amount of the cred6 it determined under this section for any taxable year shall 

7 not exceed $400 per qualified employee employed by the 

8 eligible employer during the taxable year. 

9 ‘‘(c) DEFINITIONS.—For purposes of this section— 

10 ‘‘(1) ELIGIBLE EMPLOYER.—With respect to a 

11 taxable year, the term ‘eligible employer’ means an 

12 employer who— 

13 ‘‘(A) develops and implements a qualified 

14 wellness program, and 

15 ‘‘(B) keeps accurate records of the preven16 tive services and other programs in which the 

17 eligible employer’s employees have participated 

18 during the taxable year. 

19 ‘‘(2) QUALIFIED WELLNESS PROGRAM.—With 

20 respect to an eligible employer, the term ‘qualified 

21 wellness program’ means a program— 

22 ‘‘(A) that is developed and implemented by 

23 the eligible employer, in consultation with an in24 dividual who has implemented a wellness pro25 gram for a different employer and who will enVerDate Nov 24 2008 04:13 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3490.IH H3490

tjames on DSKG8SOYB1PROD with BILLS
3 

•HR 3490 IH

1 sure compliance with appropriate measures to 

2 protect the privacy of program participants, 

3 ‘‘(B) that conducts health risk assessments 

4 for each of the program’s participants, 

5 ‘‘(C) that offers at least 2 of the preventive 

6 services strongly recommended by the U.S. Pre7 ventive Services Task Force on an annual basis, 

8 ‘‘(D) that offers annual counseling sessions 

9 and seminars related to at least 4 of the fol10 lowing: 

11 ‘‘(i) smoking, 

12 ‘‘(ii) obesity, 

13 ‘‘(iii) stress management, 

14 ‘‘(iv) physical fitness, 

15 ‘‘(v) nutrition, 

16 ‘‘(vi) substance abuse, 

17 ‘‘(vii) depression, 

18 ‘‘(viii) mental health, 

19 ‘‘(ix) heart disease, and 

20 ‘‘(x) maternal and infant health, and 

21 ‘‘(E) whose qualified participants include 

22 not less than 60 percent of the eligible employ23 er’s full-time employees. 


tjames on DSKG8SOYB1PROD with BILLS
4 

•HR 3490 IH

1 ‘‘(3) QUALIFIED EMPLOYEE.—With respect to 

2 an eligible employer, the term ‘qualified employee’ 

3 means an individual who is— 

4 ‘‘(A) a full-time employee of the eligible 

5 employer, and 

6 ‘‘(B) a qualified participant in the eligible 

7 employer’s qualified wellness program. 

8 ‘‘(4) QUALIFIED PARTICIPANT.—With respect 

9 to a taxable year, the term ‘qualified participant’ 

10 means an individual— 

11 ‘‘(A) who participates in at least 4 of the 

12 annual preventive services or other programs 

13 offered through a qualified wellness program 

14 during the taxable year, and 

15 ‘‘(B) with respect to whom a health risk 

16 assessment has been conducted during the tax17 able year, 

18 as determined by the eligible employer who has de19 veloped and implemented such qualified wellness 

20 program. 

21 ‘‘(d) TERMINATION.—This section shall not apply in 

22 taxable years beginning after December 31, 2014.’’. 

23 (b) CONFORMING AMENDMENTS.— 

24 (1) Section 38(b) of such Code is amended by 

25 striking ‘‘plus’’ at the end of paragraph (34), by 


tjames on DSKG8SOYB1PROD with BILLS
5 

•HR 3490 IH

1 striking the period at the end of paragraph (35) and 

2 inserting ‘‘, plus’’, and by adding at the end the fol3 lowing new paragraph: 

4 ‘‘(36) the wellness program employer credit de5 termined under section 45R(a).’’. 

6 (2) The table of sections for subpart D of part 

7 IV of subchapter A of chapter 1 of such Code is 

8 amended by inserting after the item relating to sec9 tion 45Q the following new item: 

‘‘Sec. 45R. Wellness program employer credit.’’. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to taxable years beginning after 

12 the date of the enactment of this Act. 

13 SEC. 2. WELLNESS PROGRAM PARTICIPANT CREDIT. 

14 (a) IN GENERAL.—Subpart A of part IV of sub15 chapter A of chapter 1 of the Internal Revenue Code of 

16 1986 (relating to nonrefundable personal credits) is 

17 amended by inserting after section 25D the following new 

18 section: 

19 ‘‘SEC. 25E. WELLNESS PROGRAM PARTICIPANT CREDIT. 

20 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of a 

21 qualified employee, there shall be allowed as a credit 

22 against the tax imposed by this chapter for the taxable 

23 year an amount equal to $400. 

24 ‘‘(b) DEFINITIONS.—For purposes of this section— 


tjames on DSKG8SOYB1PROD with BILLS
6 

•HR 3490 IH

1 ‘‘(1) QUALIFIED EMPLOYEE.—With respect to 

2 an eligible employer, the term ‘qualified employee’ 

3 means an individual who is— 

4 ‘‘(A) a full-time employee of the eligible 

5 employer, and 

6 ‘‘(B) a qualified participant in the eligible 

7 employer’s qualified wellness program. 

8 ‘‘(2) QUALIFIED PARTICIPANT.—With respect 

9 to a taxable year, the term ‘qualified participant’ 

10 means an individual— 

11 ‘‘(A) who participates in at least 4 of the 

12 annual preventive services or other programs 

13 offered through a qualified wellness program 

14 during the taxable year, and 

15 ‘‘(B) with respect to whom a health risk 

16 assessment has been conducted during the tax17 able year, 

18 as determined by the eligible employer who has de19 veloped and implemented such qualified wellness 

20 program. 

21 ‘‘(3) QUALIFIED WELLNESS PROGRAM.—With 

22 respect to an eligible employer, the term ‘qualified 

23 wellness program’ means a program— 

24 ‘‘(A) that is developed and implemented by 

25 the eligible employer, in consultation with an inVerDate Nov 24 2008 04:13 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3490.IH H3490

tjames on DSKG8SOYB1PROD with BILLS
7 

•HR 3490 IH

1 dividual who has implemented a wellness pro2 gram for a different employer and who will en3 sure compliance with appropriate measures to 

4 protect the privacy of program participants, 

5 ‘‘(B) that conducts health risk assessments 

6 for each of the program’s participants, 

7 ‘‘(C) that offers at least 2 of the preventive 

8 services strongly recommended by the U.S. Pre9 ventive Services Task Force on an annual basis, 

10 ‘‘(D) that offers annual counseling sessions 

11 and seminars related to at least 4 of the fol12 lowing: 

13 ‘‘(i) smoking, 

14 ‘‘(ii) obesity, 

15 ‘‘(iii) stress management, 

16 ‘‘(iv) physical fitness, 

17 ‘‘(v) nutrition, 

18 ‘‘(vi) substance abuse, 

19 ‘‘(vii) depression, 

20 ‘‘(viii) mental health, 

21 ‘‘(ix) heart disease, and 

22 ‘‘(x) maternal and infant health, and 

23 ‘‘(E) whose qualified participants include 

24 not less than 60 percent of the eligible employ25 er’s full-time employees. 


tjames on DSKG8SOYB1PROD with BILLS
8 

•HR 3490 IH

1 ‘‘(4) ELIGIBLE EMPLOYER.—With respect to a 

2 taxable year, the term ‘eligible employer’ means an 

3 employer who— 

4 ‘‘(A) develops and implements a qualified 

5 wellness program, and 

6 ‘‘(B) keeps accurate records of the preven7 tive services and other programs in which the 

8 eligible employer’s employees have participated 

9 during the taxable year. 

10 ‘‘(c) TERMINATION.—This section shall not apply in 

11 taxable years beginning after December 31, 2014.’’. 

12 (b) CONFORMING AMENDMENT.—The table of sec13 tions for subpart A of part IV of subchapter A of chapter 

14 1 of such Code is amended by inserting after the item 

15 relating to section 25D the following new item: 

‘‘Sec. 25E. Wellness program participant credit.’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to taxable years beginning after 

18 the date of the enactment of this Act. 

Æ 


tjames on DSKG8SOYB1PROD with BILLS