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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. WELLNESS PROGRAM EMPLOYER CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business related credits) is amended by 
inserting after section 45Q the following new section: 
‘‘SEC. 45R. WELLNESS PROGRAM EMPLOYER CREDIT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the wellness program employer credit determined under 
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this section for any taxable year is an amount equal to 
30 percent of the expenses paid or incurred by the eligible 
employer during the taxable year to develop and imple-
ment a qualified wellness program. 
‘‘(b) DOLLAR LIMITATION.—The amount of the cred-
it determined under this section for any taxable year shall 
not exceed $400 per qualified employee employed by the 
eligible employer during the taxable year. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE EMPLOYER.—With respect to a 
taxable year, the term ‘eligible employer’ means an 
employer who— 
‘‘(A) develops and implements a qualified 
wellness program, and 
‘‘(B) keeps accurate records of the preven-
tive services and other programs in which the 
eligible employer’s employees have participated 
during the taxable year. 
‘‘(2) QUALIFIED
WELLNESS
PROGRAM.—With 
respect to an eligible employer, the term ‘qualified 
wellness program’ means a program— 
‘‘(A) that is developed and implemented by 
the eligible employer, in consultation with an in-
dividual who has implemented a wellness pro-
gram for a different employer and who will en-
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sure compliance with appropriate measures to 
protect the privacy of program participants, 
‘‘(B) that conducts health risk assessments 
for each of the program’s participants, 
‘‘(C) that offers at least 2 of the preventive 
services strongly recommended by the U.S. Pre-
ventive Services Task Force on an annual basis, 
‘‘(D) that offers annual counseling sessions 
and seminars related to at least 4 of the fol-
lowing: 
‘‘(i) smoking, 
‘‘(ii) obesity, 
‘‘(iii) stress management, 
‘‘(iv) physical fitness, 
‘‘(v) nutrition, 
‘‘(vi) substance abuse, 
‘‘(vii) depression, 
‘‘(viii) mental health, 
‘‘(ix) heart disease, and 
‘‘(x) maternal and infant health, and 
‘‘(E) whose qualified participants include 
not less than 60 percent of the eligible employ-
er’s full-time employees. 
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‘‘(3) QUALIFIED EMPLOYEE.—With respect to 
an eligible employer, the term ‘qualified employee’ 
means an individual who is— 
‘‘(A) a full-time employee of the eligible 
employer, and 
‘‘(B) a qualified participant in the eligible 
employer’s qualified wellness program. 
‘‘(4) QUALIFIED
PARTICIPANT.—With respect 
to a taxable year, the term ‘qualified participant’ 
means an individual— 
‘‘(A) who participates in at least 4 of the 
annual preventive services or other programs 
offered through a qualified wellness program 
during the taxable year, and 
‘‘(B) with respect to whom a health risk 
assessment has been conducted during the tax-
able year, 
as determined by the eligible employer who has de-
veloped and implemented such qualified wellness 
program. 
‘‘(d) TERMINATION.—This section shall not apply in 
taxable years beginning after December 31, 2014.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of such Code is amended by 
striking ‘‘plus’’ at the end of paragraph (34), by 
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striking the period at the end of paragraph (35) and 
inserting ‘‘, plus’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(36) the wellness program employer credit de-
termined under section 45R(a).’’. 
(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 45Q the following new item: 
‘‘Sec. 45R. Wellness program employer credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 2. WELLNESS PROGRAM PARTICIPANT CREDIT. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to nonrefundable personal credits) is 
amended by inserting after section 25D the following new 
section: 
‘‘SEC. 25E. WELLNESS PROGRAM PARTICIPANT CREDIT. 
‘‘(a) ALLOWANCE
OF CREDIT.—In the case of a 
qualified employee, there shall be allowed as a credit 
against the tax imposed by this chapter for the taxable 
year an amount equal to $400. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
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‘‘(1) QUALIFIED EMPLOYEE.—With respect to 
an eligible employer, the term ‘qualified employee’ 
means an individual who is— 
‘‘(A) a full-time employee of the eligible 
employer, and 
‘‘(B) a qualified participant in the eligible 
employer’s qualified wellness program. 
‘‘(2) QUALIFIED
PARTICIPANT.—With respect 
to a taxable year, the term ‘qualified participant’ 
means an individual— 
‘‘(A) who participates in at least 4 of the 
annual preventive services or other programs 
offered through a qualified wellness program 
during the taxable year, and 
‘‘(B) with respect to whom a health risk 
assessment has been conducted during the tax-
able year, 
as determined by the eligible employer who has de-
veloped and implemented such qualified wellness 
program. 
‘‘(3) QUALIFIED
WELLNESS
PROGRAM.—With 
respect to an eligible employer, the term ‘qualified 
wellness program’ means a program— 
‘‘(A) that is developed and implemented by 
the eligible employer, in consultation with an in-
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‘‘(4) ELIGIBLE EMPLOYER.—With respect to a 
taxable year, the term ‘eligible employer’ means an 
employer who— 
‘‘(A) develops and implements a qualified 
wellness program, and 
‘‘(B) keeps accurate records of the preven-
tive services and other programs in which the 
eligible employer’s employees have participated 
during the taxable year. 
‘‘(c) TERMINATION.—This section shall not apply in 
taxable years beginning after December 31, 2014.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subpart A of part IV of subchapter A of chapter 
1 of such Code is amended by inserting after the item 
relating to section 25D the following new item: 
‘‘Sec. 25E. Wellness program participant credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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