$10,000 Tax Credit Available For Mass Businesses Implementing Wellness Programs

Thomas D. Herman, Esq., Smith Duggan Buell & Rufo LLP

Massachusetts companies employing fewer than 200 employees are now eligible to apply for a state tax credit of up to $10,000 per year for providing their employees with a qualified wellness program. The credit is in the amount of up to 25% of the cost of implementing an employee wellness program. Costs in the initial year of any particular employer’s wellness program exceeding that amount may be carried over into subsequent years for credit against future state tax liabilities.  For employers who do not yet have a wellness program in place, this recently enacted tax credit provides an additional incentive to do so.

Who is eligible to apply for the Wellness Tax Credit certification? 

A business must meet all of the following criteria to apply:

• Employ 200 or fewer employees, the majority of whom work in the Commonwealth.
• Offer healthcare benefits to employees.
• Sole proprietorships, professions, trades, businesses, or partnerships are eligible to apply.
• Businesses must be in compliance with all legal obligations of employers including, but not limited to, those enumerated in Massachusetts General Laws (MGL), chapter 149, and with all applicable labor, licensing, and tax laws (including MGL c. 149, MGL c. 151, MGL c. 151A, MGL c. 152).

The Massachusetts Department of Public Health will be issuing regulations with further details.

If you have any questions about the Massachusetts business tax credit for wellness programs, or other corporate legal matters, please contact Tom Herman at 617-228-4400 or [email protected].