SENATE BILL No. 863

 

 

November 3, 2005, Introduced by Senator GEORGE and referred to the Committee on Finance.

 

 

 

     A bill to amend 1975 PA 228, entitled

 

"Single business tax act,"

 

(MCL 208.1 to 208.145) by adding section 35e.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 35e. (1) For tax years that begin after December 31,

 

2005, a taxpayer may claim a credit against the tax imposed under

 

this act equal to the premiums paid in the tax year for wellness

 

coverage plans described in section 414b of the nonprofit health

 

care corporation reform act, 1980 PA 350, MCL 550.1414b, or section

 

3426 of the insurance code of 1956, 1956 PA 218, MCL 500.3426.

 

     (2) For tax years that begin after December 31, 2005, a

 

taxpayer may claim a credit against the tax imposed under this act

 

equal to the costs paid in the tax year for a wellness maintenance

 

or improvement program that are not included under subsection (1),


 

for the taxpayer's employees. For the costs paid to qualify for the

 

credit under this subsection, the wellness maintenance or

 

improvement program must meet all of the following criteria for

 

each tax year for which a credit under this subsection is claimed:

 

     (a) An employee that participates in the wellness maintenance

 

or improvement program receives a limited reward for all wellness

 

programs and the programs must require satisfaction of a standard

 

related to a health factor.

 

     (b) The wellness maintenance or improvement program must be

 

reasonably designed to promote good health or prevent disease for

 

employees in the program.

 

     (c) The reward under the program must be available to all

 

similarly situated individuals. Plans must allow individualized

 

adjustments to employees' wellness maintenance or improvement

 

programs to address the health factors of the particular employees

 

for whom it is unreasonably difficult to qualify for the benefits

 

under the program and provide reasonable alternative standards.

 

     (3) If the credits allowed under this section for the tax year

 

and any unused carryforward of the credits allowed under this

 

section exceed the tax liability of the taxpayer for the tax year,

 

the excess shall not be refunded, but may be carried forward as an

 

offset to the tax liability in subsequent tax years for 10 tax

 

years or until the excess credit is used up, whichever occurs

 

first.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 93rd Legislature are

 

enacted into law:


 

     (a) Senate Bill No. 848.                                  

 

           

 

     (b) Senate Bill No. 849.