Credit for Wellness Programs: Credit for Wellness Programs (2025)
Maine · Maine Revenue Services · Used for tax years 2025
This worksheet calculates Maine’s Credit for Wellness Programs for tax year 2025. It reports employee counts, wellness program expenditures, unused credit carried forward, and details about the program, and is enclosed with Form 1040ME, Form 1041ME, or Form 1120ME.
Who files this form
An employer with 20 or fewer employees, calculated on an average monthly basis, may qualify for this credit. An employer is a taxpayer that employs one or more people who perform services for the taxpayer within Maine.
Use this worksheet to claim the credit for expenditures to develop, institute and maintain a wellness program. Enclose it with Form 1040ME, Form 1041ME or Form 1120ME.
Owners of pass-through entities that make eligible expenditures may claim a credit in proportion to their interests in the entity.
What you'll need
Have the following information ready to complete the 2025 worksheet:
- Your taxpayer name and EIN or SSN.
- Your employee count, calculated on an average monthly basis.
- Total expenditures during the tax year to develop, institute and maintain the wellness program.
- A brief description of the qualified program and a brief list of its expenditures.
- Your 2024 credit worksheet if carrying unused credit forward to 2025. Line 4 asks for the unused amount from line 5 of that worksheet.
If claiming through a pass-through entity, provide its name, EIN or SSN, and your ownership percentage for the tax year. Attach a copy of the federal Schedule K-1 issued to you by that entity.
Maine Revenue Services may request additional information supporting the credit before processing the return.
How to file
Complete the 2025 worksheet as follows:
- Enter your average monthly employee count on line 1 and multiply it by $100 on line 2.
- Enter qualifying wellness program expenditures on line 3 and the unused credit carried from the 2024 worksheet on line 4.
- Add lines 3 and 4 on line 5.
- On line 6, enter the smallest of line 2, line 5 or $2,000.
- Describe the program on line 7 and list its expenditures on line 8.
Transfer line 6 to the applicable return:
- Form 1040ME: Schedule A, Other Tax Credits Worksheet (for Lines 8 and 20), line 9.
- Form 1041ME: Schedule A, line 11.
- Form 1120ME: Schedule C, line 1j.
Enclose the worksheet with your return. The supplied text does not give a mailing address or e-file instructions.
Common mistakes
- Missing the Maine income adjustment: Maine taxable income must be increased by any expenditures included on line 3 that were used to reduce federal taxable income.
- Leaving out pass-through details or the K-1: Provide the entity's name and ID number, your ownership percentage, and a copy of the federal Schedule K-1 issued to you. The credit is allowed in proportion to your interest in the entity.
- Overlooking a request for support: Maine Revenue Services may request additional information supporting the credit before the return can be processed.
Questions people ask
What counts as a wellness program?
A wellness program improves employee health, morale and productivity. Examples include health education, behavioral change programs, and incentive awards for employees who engage in regular physical activity. Behavioral change programs include counseling, seminars or classes on nutrition, stress management or smoking cessation.
How much is the credit?
The credit is based on expenditures during the tax year to develop, institute and maintain a wellness program. The total credit, including carryovers, is limited to the lesser of $100 per employee or $2,000. It cannot reduce tax liability below zero.
Can unused credit be carried forward?
Yes. The worksheet states that unused credit amounts on line 3 may be carried forward for up to five years.
Can owners of a pass-through entity claim the credit?
Yes. When a pass-through entity makes eligible expenditures, its partners, members, shareholders, beneficiaries or other owners are allowed a credit in proportion to their interests. Provide the entity information and your ownership percentage, and attach your federal Schedule K-1.