| State: |
MD |
| Incentive Type: |
Income/Franchise Tax Incentives and Credits |
| Incentive Title: |
Jobs Credits |
| Description: |
1. JOB CREATION TAX CREDIT: Tax credits for creating new jobs based on number of positions created or on the wages paid to the new employees. Credits may be used against income tax, insurance premiums tax or public service company franchise tax. Tax credit is two and half percent of the total annual wages not to exceed $1,000 times the number of jobs created. For those businesses located in a state enterprise zone, a federal empowerment zone, or a Department of Housing and Community Development neighborhood the credit increases to $1,500 times the number of jobs created. Credit may not exceed $1 million per year.
2. EMPLOYMENT OPPORTUNITY TAX CREDIT: Businesses that hire an individual who is receiving Aid to Families with Dependent Children (AFDC) or Family Investment Program (FIP) entitlements may receive an income tax credit for wages, child care and transportation paid to or on behalf of the employee.
3. DISABILITY EMPLOYMENT TAX CREDIT: Income tax credit for the first two years of employment of a disabled individual for both the wages paid and the childcare or transportation expenses paid on behalf of the employee.
4. ONE MARYLAND ECONOMIC DEVELOPMENT TAX CREDIT: Income tax credits for the establishment or expansion of facilities and creation of jobs in a priority funding area or in a distressed county. May receive up to $5.5 million in tax credits. Project tax credits may be up to $5,000,000 and start-up tax credits may be up to $500,000. Start up credits are for those businesses relocating to Maryland and for the costs of furnishing and equipping a new facility.
5. EMPLOYER-PROVIDED LONG-TERM CARE INSURANCE TAX CREDIT: Tax credit for employers who provide long term care insurance as part of their benefits package.
6. BUSINESSES THAT CREATE NEW JOBS TAX CREDIT: Tax credit for Maryland businesses that create new positions and establish or expand facilities. The credit may be taken either as an income tax credit or a property tax credit over a six year period. If the unused credit is more than the tax liability, it may be carried forward five years. |
| Eligibility Requirements: |
1. Must create at least 60 new full-time positions or, if the positions are highly paid, must create at least 30 positions. A business must be certified and may not claim any employees prior to notifying the NBED of its intent. Wages must pay more that 150% of the federal minimum wage.The job must be filled for 12 months.
2. Hire at least 1 employee that received AFDC or FIP payments for any 3 months during the 18 month period before employment. Employee cannot be closely related to owners of business. Certification must be obtained from DOL, Licensing and Regulation that the individual is a qualified employee. Maximum credit allowed in the first year is 30% of the first $6,000 in wages($1800) and $600 paid of the child-care and transportation expense. In the second year, it decreases to 20% of the first $6,000 of wages paid and $500 of child care or transportation expenses. May only be taken for 2 years. May not take the tax credit if the business takes Disability Employment Tax Credit.
3. Credit may not be claimed if the Employment Opportunity Tax Credit was claimed for the same employee. Has the same requirements as Employment Opportunity Tax Credit.
4. The business must be located in a"Priority Funding Area" or a "qualified distressed county". May not claim any new employees or expenses incurred prio to notifying the DBED. Wages paid must be 150% of the federal minimum wage snd the job must be filled for 12 months. Must create at least 25 positions and spend at least $500,000, or if a start-up, there is no minimum expenditure requirement. The business has 14 years to claim the tax credit. It is refundable after 4 years.
5.Long-term care insurance must be provided to one or more employees during the taxable year. Credit is 5% of total costs. Total amount claimed may not exceed $5,000 per employer or $100 per employee. Unused tax credits may be carried forward 5 years.
6. The business must first be granted a property tax credit by a local Maryland government. The business must create 25 new jobs as part of the expansion(5,000 sq ft or more). Businesses locating in smaller counties(population of 30,000 or less) need only create 10 new jobs. Enhanced credits are available to those companies who create or expand a business of 250,000 sq ft or more. |
| Geographic Restrictions: |
Statewide |
| Granting Authority: |
1&4 MDBED 2,3,5&6 MD Comptroller |
|
|
