Back 

Job Creation Tax Credits

Job Creation Tax Credits - 50 State Table

States regularly rely on tax incentives as an economic development tool to spur job growth. Economists across the nation agree that job creation is the key to a sustained economic recovery. As states work to recover from the recent economic downturn, legislators have been especially aggressive in pursuing job creation tax credits. Employers receive these credits when they create and fill new jobs, so the programs offer tangible benefits. States also expect that the return-in terms of the new employee's income taxes and renewed spending-will at least meet or exceed what the state loses in revenue directed to the credit. The following chart shows job creation tax credits for 40 states.
AL | AZ | AR | CA | CO | CT | DE | FL | GA | ID | IL | IN | IA | KS | KY | LA | ME | MD | MA | MN | MS | MO | NE | NH | NJ | NM | NY | NC | ND | OH | OK | PA | RI | SC | TN | UT | VT | VA | WV | WI

STATES
TAX CREDIT

Full Employment Act of 2011
Effective for tax years beginning on or after Jan. 1, 2011, a tax credit is available against corporate, personal and financial institutional excise taxes for certain small businesses that hire additional employees after June 9, 2011. Small businesses (with 50 or fewer employees on June 9, 2011) that create new jobs paying more than $10 per hour may claim a tax credit for each new job available in the tax year during which the new employee has completed 12 months of consecutive employment. (Code of Alabama, Sec. 40-18-293)

The employer must have a net increase in the total number of full time employees in Alabama on the last date of each tax year during which the employees are hired for which the employer claims the credit, over the number employed in Alabama as of the last day of the tax year immediately preceding the first employment year. The increase must equal or exceed the number of newly hired employees for which a credit is sought by one employee for each newly hired employee for whom a credit is being sought for the current year, plus one employee for all employees for whom credits were claimed in prior years. (Code of Alabama, Sec. 40-18-293)

For more information on the Full Employment Act of 2011, please click here and scroll down to page 7.
 

  • Credit amount

The amount of the credit is $1,000 for each new job. The credit is available in the tax year in which the new employee has completed 12 months of consecutive employment. The credit is nonrefundable and nontransferable. (Code of Alabama, Sec. 40-18-293)

Credit for Employment of Recipients of Temporary Assistance for Needy Families (TANF)
An employer that hires an individual on welfare may credit a portion of the individual's wages against the employer's Arizona corporate income tax liability during the first three years of employment. The credit is available to individuals, corporations and S corporations. A partnership may pass the credit through to its partners and an S corporation may pass the credit through to its shareholders. (Arizona Department of Revenue, Pub. 708, Credit for Employment of Recipients of Temporary Assistance for Needy Families (TANF)).

The employee must be an Arizona resident and receiving temporary state aid for a dependent child or children through the Arizona Department of Economic Security, under Sec. 46-101, A.R.S. through Sec. 46-300.01, A.R.S., which authorize public aid to needy families and provide wage subsidies to employers that hire aid recipients. (Sec. 43-1175(C)(1), A.R.S.)

To be eligible for the credit, the employer must show that, in the year of the tax credit, the average number of employees from needy families in its workforce increased from the average number in the preceding year, based on the report the employer submits to the Arizona Department of Economic Security for unemployment purposes. (Sec. 43-1175(D), A.R.S.)

For more information on the Credit for Employment of Recipients of Temporary Assistance for Needy Families, please click here.
 

  • Credit amount

In the first year or part-year of an employee's employment, an employer may claim a credit for 25 percent of the taxable wages paid, but no more than $500. In the second year, the credit is for one-third of the wages, but no more than $1,000. In the third year, the credit is for 50 percent of the wages, but no more than $1,500. (Sec. 43-1175(A), A.R.S.) Co-owners of a business, such as corporate partners in a partnership, may split a credit in proportion to their ownership interests in the business. (Sec. 43-1175(F), A.R.S.)

2011 Credit for New Employment
Effective July 1, 2011, the owner of a business located in Arizona before July 2017 is eligible for an income tax credit for net increases in full-time employees hired in qualified employment positions. (Sec. 43-1161, A.R.S.)

To qualify for the credit, the employer must complete the following in the first taxable year it claims the credit: (1) invest at least $5 million of capital investment and create at least 25 new qualified employment positions within a city or town that has a population of at least 50,000 and that is located in a county that has a population of at least 800,000, (2) invest at least $1 million of capital investment and create at least five qualified employee positions in any other location. Also, the employer must pay compensation at least equal to the county median wage and provide health insurance for the employee of which the employer pays at least 65 percent of the premium membership cost. (Sec. 41-1525, A.R.S.)

For more information on the 2011 Credit for New Employment, please click here.
 

  • Credit amount

The amount of the credit allowed is $3,000 per full-time employee hired for the full taxable year in a qualified employment position in each of the first three years of employment, but for not more than 400 employees per employer in any taxable year. The credit is allowed in the second and third years only for qualified employment positions for which a credit was claimed and allowed in the first year. (Sec. 43-1161(E), A.R.S.) No more than 10,000 new hires for all employers may qualify for first year credits per year. (Sec. 41-1525(D), A.R.S.)

The Nonprofit Incentive Act of 2005
The Nonprofit Incentive Act of 2005, as amended by Act 795 of 2009, allows state and local sales and use tax refunds and payroll rebates for eligible nonprofit organizations, approved by the Arkansas Economic Development Commission. However, hospitals, medical clinics, accredited academic educational institutions and churches are specifically excluded from receiving the payroll rebate incentives. To qualify for the rebate, a nonprofit organization must (1) hire new full-time permanent employees, (2) meet the requisite annual payroll threshold of $500,000 and pay an average wage in excess of 110 percent of the state or county average wage (whichever is less) and (3) have a minimum of 75 percent of its income from out-of-state sources. (Sec. 15-4-3104, A.C.A.)

For more information on the Arkansas Nonprofit Incentive Act of 2005, please click here.
 

  • Credit amount

A payroll rebate of 4 percent of the annual payroll of new full-time permanent employees may be awarded for up to five years. The program also provides a sales and use tax refund for eligible products that invest a minimum of $250,000. The refund is eligible for taxes paid on construction materials and machinery and equipment associated with an approved project. (Sec. 15-4-3105, 3106(d)(6), (7), A.C.A.)

New Jobs Credit
Beginning with the 2009 taxable year, taxpayers with 20 or fewer employees at the end of the preceding taxable year may qualify for a nonrefundable new jobs credit against the personal income tax and corporation franchise and income taxes for each new qualified employee hired. All employees of the trades or businesses that are treated as related under either IRC Sections 267, 318 or 707 are treated as employed by a single taxpayer. Taxpayers who first commence doing business in California during the taxable year are treated as though they had zero full-time employees for the immediately preceding prior taxable year. (Sec. 23623, California Rev. & Tax. Code)

For more information on the New Jobs Credit, please click here.
 

  • Credit amount

The credit is equal to $3,000 for each net increase in qualified full-time employees from the previous taxable year. The cut-off date of this tax credit shall be the last day of the calendar quarter in which the Franchise Tax Board estimates it has received returns claiming credits that cumulatively total $400 million. (Sec. 23623, Rev. & Tax. Code)

Job Growth Incentive Tax Credit
Effective for tax years beginning after 2008, but prior to 2015, Colorado taxpayers are allowed a nonrefundable credit to incentivize job growth. To qualify for the credit, taxpayers must create at least 20 new jobs in urban areas or five new jobs in an enhanced rural enterprise zone. The created jobs must pay at least 110 percent of the county wage in which the taxpayer is located, be retained for at least one year, and be approved by the Colorado Economic Development Commission only if the project would not occur but for the job growth credit. (Sec. 39-22-531(2)-(3), C.R.S.)

For more information on the Job Growth Incentive Tax Credit, please click here and here.
 

  • Credit amount

The credit is equal to 50 percent of the amount the employer is required to pay in federal social security and Medicare taxes on the created jobs, as calculated by the Colorado Economic Development Commission. (Sec. 39-22-531(5), C.R.S.)

Although the maximum tax credit authorized by the EDC is calculated by projected information submitted by the business, the actual tax credits issued will be based on actual performance. Additionally, any tax credit computed on the FICA tax paid on any employee who does not remain employed for the required 12 month period will be disallowed. The EDC will notify the Department of Revenue of any disallowed credit and the taxpayer will be required to amend any tax return that included such a disallowed credit. (FYI Income 66, Colorado Job Growth Incentive Credit, Colorado Department of Revenue)

Colorado Works Program Credit
Employers of persons receiving public assistance pursuant to the Colorado Works Program are allowed a credit for providing the following services that are incidental to the employer's business: (1) the provision of child care services or payment of costs associated with child care services for children of employees receiving public assistance, (2) health care or dental insurance for employees receiving public assistance, (3) job training or basic education for employees receiving public assistance or (4) programs for the transportation of public assistance employees to and from work. (Sec. 39-22-521, C.R.S.)

For more information on the Colorado Works Program Credit, please click here
 

  • Credit amount

The credit may be claimed for no more than two years, is equal to 20 percent of an employer's annual investment in the services, and is in addition to any other credits that the employer is eligible to claim under the state's urban and rural enterprise zone provisions. The credit must not exceed an employer's actual tax liability for that year and may be carried over. (Sec. 39-22-521, C.R.S.)

Connecticut

Job Expansion Tax Credit
A Connecticut job expansion tax credit program is established for each new, qualifying or veteran employee hired on or after Jan. 1, 2012 and prior to Jan. 1, 2014. The credit may be applied against the insurance premiums tax, the corporations business tax, the utilities company tax and the income tax. Businesses with under 50 employees must hire at least one new full-time employee. Businesses with 50 to 100 employees must hire at least five new full-time employees and businesses with over 100 employees must hire ten full-time employees. (Sec. 12-217pp(b)(1), C.G.S.)

For more information on the Job Expansion Tax Credit, please click here.
 

  • Credit amount

The job expansion tax credit amount is equal to $500 per month for each new full-time job created. If the new employee is receiving vocational rehabilitation services from the Bureau of Rehabilitative Services, receiving unemployment benefits or is a veteran employee who was honorably discharged from or released under honest conditions from active service, the credit is increased to $900 per month. Note that the credit must be claimed in the tax year in which it is earned and in the two immediately succeeding income tax years. (Sec. 12-217pp(d)(1), C.G.S.) The total amount of new job creation credits (no longer being issued), qualified small business job creation credits (no longer being issued), vocational rehabilitation job creation credits (no longer being issued) and job expansion credits granted to all taxpayers may not exceed $20 million in any one fiscal year. (Sec. 12-217pp(f)(1), C.G.S.)

New Economy Jobs Program Credit
Effective after June 30, 2007, certified Delaware employers that add at least 50 new jobs in the state with an annual salary of at least $100,000 may claim a credit against the corporation income tax. (Sec. 2081; Sec. 2082; Sec. 2083(a)(3), Tit. 30, Delaware Code) The credit also may be claimed against the franchise tax imposed on the taxable income or entire net income of banking organizations and trusts. (Sec. 2083(a)(1), Tit. 30, Delaware Code)

No more than 10 percent of the total number of qualified employees counted for purposes of claiming the credit may be individuals who were required to file a Delaware personal income tax return the calendar year immediately preceding the first year the eligible employer claims the credit. (Sec. 2084(5), Tit. 30, Delaware Code)

For more information on the New Economy Jobs Program Credit, please click here.
 

  • Credit amount

The amount of the new economy jobs credit is equal to up to 40 percent of the withholding taxes collected and paid on behalf of the new employees. (Sec. 2083(b), Tit. 30, Delaware Code) Additional credits are available to employers that create new jobs in targeted growth zones, incorporated municipalities and former brownfields. (Sec. 2083(c), Tit. 30, Delware Code) The maximum credit allowed during any calendar year is 65 percent of the employer's withholding payments. (Sec. 2084(1), Tit. 30, Delaware Code)

New Jobs Creation Credit
Under the new jobs creation credit program, and the Blue Collar Jobs Tax Act credit program before July 1, 2011, any corporation, other than a public utility, engaging in a qualified or "targeted industry" activity within Delaware that has placed into service a qualified new or expanded facility may claim a credit against corporation income tax if, during any consecutive 12-month period, five or more regular, full-time employees are hired and a minimum of $200,000 is invested at the facility. (Sec. 2011(a), Tit. 30, Code) At least 25 percent of the employees must be Delaware residents when the facility is placed in service. (Sec. 2011(e), Tit. 30, Code)

A telecommunication service firm is eligible for the credit if the firm invests a minimum $750,000 and hires a minimum of 50 additional qualified new employees. (Sec. 2010(3)(i), Tit. 30, Code; Sec. 2011(b)(3), Tit. 30, Code)

For more informaton on the New Jobs Creation Credit, please click here.
 

  • Credit amount

The targeted industries credit is equal to $500 multiplied by the number that is the greater of by each $100,000 of qualified investment (Sec. 2011(b)(2), Tit. 30, Delaware Code) plus $500 multiplied by the greater of the following: (1) The difference between the number of qualified employees employed one year after the facility is placed in service and the number of qualified employees employed by the taxpayer or related person on the day before the facility is placed in service or (2) The difference between the number of qualified employees employed one year after the date the taxpayer satisfied the requirement of employing at least five qualified employees during the 12-month testing period and the number of qualified employees employed by the taxpayer or any related person prior to that date. (Sec. 2011(b)(1), Tit. 30, Delaware Code)


The credit amount is increased from $500 to $750 for facilities engaged in clean energy technology device manufacturing effective for taxable periods beginning after June 30, 2011. (Sec. 2040(a), Tit. 30, Code)

A credit is not allowed with respect to the creation of new jobs, except to the extent that the qualified investment is $40,000 or more per qualified employee, (Sec. 2011(b)(1)(B), Tit. 30, Code) or $15,000 or more in the case of telecommunication employees. (Sec. 2011(b)(3), Tit. 30, Delaware Code) Also, no credit is allowed for any qualified employee to the extent that a credit was claimed by the taxpayer or a related person for that employee with respect to another qualified facility placed in service in the same or prior taxable year. (Sec. 2011(b)(1)(B), Tit. 30, Delaware Code)

If the number of qualified employees employed in a year subsequent to the year that the facility was placed in service is less than 90 percent of the number of qualified employees used to compute the credit initially, the credit is reduced by 1 percent for each full percentage point that the number of employees has fallen. (Sec. 2011(c), Tit. 30, Delaware Code)

An alternative limited investment tax credit equal to 75 percent of the credit otherwise allowed is available to any taxpayer, other than a public utility, that does not meet the new jobs requirement, if the investment equals or exceeds the greater of $1 million or 15 percent of the unadjusted basis of the facility at the close of the taxable year preceding the date on which installation or construction of the investment commenced, and substantially all of the use of the qualified facility by the taxpayer occurs in the activity of aviation services, manufacturing or wholesaling. (Sec. 2011(k), Tit. 30, Delaware Code) Facilities engaged in clean energy technology device manufacturing effective for taxable periods beginning after June 30, 2011 that do not meet the new jobs requirement, but meet such investment requirements, are also eligible for the alternative credit amount. (Sec. 2040(b), Tit. 30, Delaware Code)

The alternative credits claimed in any tax year may not exceed the difference between $500,000 and the amount of applicable license fee reductions. (Sec. 2040(b), Tit. 30, Delaware Code)

If the qualified facility is an expanded facility, total wages paid during the taxable year by the taxpayer to qualified employees employed at the facility must equal or exceed the greater of $1,000,000 or 85 percent of the unadjusted basis in such facility at the close of the taxable year on the date on which installation or construction at such facility commenced. (Sec. 2011(k), Tit. 30, Delaware Code)

Jobs for the Unemployed Tax Credit Program
Effective July 1, 2010, an eligible business may receive a tax credit for each qualified employee hired after June 30, 2010 who was not previously employed by the eligible business, its parent or an affiliated corporation. The credit will be applied to the following taxable year. (Sec. 220.1896, F.S.)

For more information on the Jobs for the Unemployed Tax Credit Program, please click here.
 

  • Credit amount

The credit is equal to $1,000 for each qualified employee. (Sec. 220.1896(2), F.S.)

Annual credits for all taxpayers may not exceed $10 million, $5 million of which is available to be awarded in the 2011-2012 fiscal year, and $5 million of which is available to be awarded in the 2012-2013 fiscal year. (Sec. 220.1896(5), F.S.)

Georgia

Job Tax Credit Program
Certain companies that create jobs in the state are eligible for a jobs tax credit. (O.C.G.A. Sec. 48-7-40(e); Reg. Sec. 560-7-8-.36) The Georgia Department of Community Affairs annually ranks and divides 159 counties into four tiers on the basis of economic factors. Tier 1 includes the least developed counties, with tier 2, tier 3, and tier 4 including successively more developed counties. (O.C.G.A. Sec. 48-7-40(b)) A similar credit is available to companies that create jobs in designated census tracts.

Taxpayers that initially claimed the credit for any taxable year beginning before Jan. 1, 2009, will be governed, for purposes of all credits claimed as well as any credits claimed in subsequent taxable years related to such initial claim, by this Code Section as it was in effect for the taxable year in which the taxpayer made such initial claim. (O.C.G.A. Sec. 48-7-40(l))

For more information on the Georgia Job Tax Credit Program, please click here.
 

  • Credit amount

The amount of the annual credit is equal to the following for each new full-time job created: (1) $3,500 for a tier 1 business that increases employment by at least five (2) $2,500 for a tier 2 business that increases employment by at least 10 (3) $1,250 for a tier 3 business that increases employment by at least 15 and (4) $750 for a tier 4 business that increases employment by at least 25. (O.C.G.A. Sec. 48-7-40(e); Reg. Sec. 560-7-8-.36)

The job tax credit is allowed over a five-year period for each new full-time job created above the minimum number required. (O.C.G.A. Sec. 48-7-40(e)(1))

The average wage of the new job created must be above the average wage of the county that has the lowest wage of any Georgia County. The employer must make health-insurance coverage available to employees filling the new jobs, but need not pay for any part of the coverage if the employer does not pay for any part of the health insurance provided to existing employees. (O.C.G.A. Sec. 48-7-40(e)(1))

Additional credits are available for a period of five years for qualified business enterprises that create additional new full-time jobs. (O.C.G.A. Sec. 48-7-40(f); Reg. Sec. 560-7-8-.36(5)) Additional new jobs means those new jobs created in years two through five that increase the monthly full-time employment average for that year above the monthly full-time employment average for year one. Additional new full-time jobs are determined by subtracting the highest total employment of the business enterprise during years two through five (two through six for tax years prior to 2009). The allowable credit will be adjusted in the event of employment fluctuations during the five years of credit. (O.C.G.A. Sec. 48-7-40(f))

Also, existing business enterprises are allowed an additional $500 tax credit per eligible new full-time employee job the first year in which the new full-time job is created. However this additional credit for existing business enterprises applies only to new eligible full-time jobs created in taxable years beginning on or after Jan. 1, 2006, and ending no later than taxable years beginning prior to Jan. 1, 2011. (O.C.G.A. Sec. 48-7-40(e)(2))

Business enterprises that are located in joint development authority jurisdictions established by two or more contiguous counties qualify for an additional $500 credit for each new job created. (Reg. Sec. 560-7-8-.36(5))

In Tier 3 and 4 counties, the tax credit is limited to 50 percent of the taxpayer's state income tax liability which is attributable to income derived from operations in the state for that taxable year. In Tier 1 and 2 counties, the credit is limited to an amount not greater than 100 percent of the taxpayer's state income tax liability attributable to income derived from operations in the state for such taxable year. (O.C.G.A. Sec. 48-7-40(h))

The credit is not allowed during a year if the net employment increase falls below the number required in such tier. The credit allowed for each year will be adjusted for net new employment fluctuations above the minimum number. (O.C.G.A. Sec. 48-7-40(e))

Business enterprises in tier 1 counties may use the amount of credits that exceed income tax liability credit limitations against quarterly or monthly withholding tax, but not to exceed in any one taxable year $3,500 for each new full-time employee job when aggregated with the credit applied against income taxes. (O.C.G.A. Sec. 48-7-40(e); Reg. Sec. 560-7-8-.36(6))

Business enterprises engaged in a "competitive project" located in a tier 2 county (where the amount of the credit exceeds the business enterprise's liability for taxes in a taxable year), or located in a tier 3 or 4 county (where the amount of the credit exceeds 50 percent of the business enterprise's liability for a taxable year), may claim the amount of credits that exceed income tax liability against quarterly or monthly withholding tax, but not to exceed $2,500 for each new full-time employee job when aggregated with the credit applied against income taxes. (O.C.G.A. Sec. 48-7-40(e)(1); Reg. Sec. 560-7-8-.36(6))

Hire One Tax Credit
An Idaho corporate income tax credit is allowed for employers who hired new employees in a trade or business on or after April 15, 2011 and before March 31, 2013. The new employee must remain employed for nine months to receive the credit, so the qualifying period for the credit expires on Jan. 1, 2014. The new employee must receive qualifying employer-provided health care benefits. In addition, the employer must pay an average of $15.00 per hour in counties with less than 10 percent unemployment, and at least $12 per hour in counties with 10 percent or greater unemployment. (IC Sec. 63-3029F(1)-(2))


For an employer to qualify for the credit, the number of new employees must increase above the entity's average employment for either the prior tax year or the average of the three prior tax years, whichever is higher. Also, the number of new employees must equal or exceed one person. (IC Sec. 63-3029F(2); Rule 35.01.01.746.05.a) The number of employees during any tax year for any taxpayer is the mathematical average of the number of qualified employees reported to the Idaho Department of Labor during the 12 months of the tax year. However, if the business was in operation for less than the entire tax year, then the number of qualified employees of the business for the year is the average number actually employed during the months of operation. (IC Sec. 63-3029F(2))

If a taxpayer's trade or business includes both a revenue-producing enterprise and other activities, then the taxpayer must calculate the number of qualifying new employees based on that portion of the Idaho business that qualifies as a revenue-producing enterprise. (Rule 35.01.01.745.04)

Finally, the activities of a taxpayer that qualify as a revenue-producing enterprise must be determined separately for each corporation that is a member of a unitary group. (Rule 35.01.01.745.06)

For more information on the Hire One Tax Credit, please click here.
 

  • Credit amount

The credit is based on the number of new employees hired, the average unemployment rate for the previous year in the county where the job was created and the work performed and equal to a percentage of the employee’s gross annual wages. The percentage is based on how each employer is rated by the Department of Labor for payment of unemployment insurance taxes as follows: (1) 6 percent for positive rated employers (2) 4 percent for standard-rated employers and (3) 2 percent for deficit-rated employers. (IC Sec. 63-3029F(1),(3))

Small Employer Incentive
A corporate taxpayer that makes a capital investment in a new plant or building facility of at least $500,000 and adds at least 10 new well-paying jobs (that is, approximately $40,000 a year (or $19.23 per hour worked), plus benefits) within a 10 year project period occurring between Jan. 1, 2006, through Dec. 31, 2020 is eligible for a nonrefundable new well-paying jobs credit against the Idaho corporate income tax. Furthermore, employment increases above the 10 new employees described above must, on average, earn at least $15.50 per hour worked. The calculation of this group average of $15.50 per hour minimum wage for these newly created jobs at a project site has been given some specificity. In calculating the group average earnings, the following amounts may not be included: amounts paid to an employee earning more than $48.08 per hour, or prior to July 1, 2008, amounts paid to less than $12.00 per hour. The denominator used in this calculation is the number of new jobs filled that pay less than $48.08 per hour worked. (IC Sec. 63-4401; IC Sec. 63-4402(2)(j); IC Sec. 63-4405(1))

Note that the employment must be primarily within the project site and that the employee must perform his or her duties for a minimum of nine months during the tax year for which the credit is claimed. (IC Sec. 63-4405(3); Rule 35.01.01.935.03; Rule 35.01.01.945.03) This credit is in lieu of the state's general new jobs tax credit. (IC Sec. 63-4405(1))

For more information on the Small Employer Incentive, please click here or here.
 

  • Credit Amount

An eligible taxpayer making the requisite new plant capital investment and adding the required number of qualified new jobs within the designated project period may claim a nonrefundable state corporate income tax credit as follows: (1) $1,500 for each new employee whose annual salary during the tax year for which the credit is earned is greater than $24.04 per hour worked, but equal to or less than an average rate of $28.85 per hour worked (2) $2,000 for each new employee whose annual salary during the tax year for which the credit is earned is greater than an average rate of $28.85 per hour worked, but equal to or less than an average rate of $36.06 per hour worked (3) $2,500 for each new employee whose annual salary during the tax year for which the credit is earned is greater than an average rate of $36.06 per hour worked, but equal to or less than an average rate of $43.27 per hour worked and (4) $3,000 for each new employee whose annual salary during the tax year for which the credit is earned is greater than an average rate of $43.27 per hour worked. (IC Sec. 63-4405(2); Rule 35.01.01.935.05; Rule 35.01.01.945.05)

Small Business Job Creation Tax Credit
The Illinois Small Business Job Creation Tax Credit is available for eligible businesses through tax years ending before Jan. 1, 2016. (35 ILCS 25/10(1)) Eligible businesses are entitled to a credit against withholding taxes in connection with the hiring of new full-time employees, so long as that hiring results in a net increase in full-time employees and that the increase is maintained for at least 12 months. (35 ILCS 25/25(a), (e), (f)) This credit must be claimed in the first year ending on or after the day commerce department issues a tax credit certificate to the taxpayer. (35 ILCS 25/25(c)))

To qualify for the credit, a new job must be sustained for at least one year and pay at least $18,200 annually (basic wage of $10.00 per hour for 35 hours per week). (35 ILCS 25/10) Eligible companies can apply for the credit on-line and will be issued a tax credit certificate beginning July 1, 2011. (35 ILCS 25/15) Applications for the credit may be submitted as soon as an eligible employee is hired and begins providing services. (35 ILCS 25/20(a))

For more information on the Small Business Job Creation Tax Credit, please click here.
 

  • Credit amount

For small businesses with less than 50 employees, the credit is $2,500 per job on withholding tax for employers who hire new, full-time Illinois employees during the 12-month period beginning July 1, 2010. Businesses hiring "Put Illinois to Work" worker-trainee are entitled to one-half of the credit, $1,250, allowable if that employee is employed for at least 6 months after the date of hire. The employer is entitled to the other half of the credit, $1,250, if that employee is employed for at least 12 months after the date of hire. (35 ILCS 25/25(d); 14 Ill. Adm. Code 529.80) The program will be capped once a total of $50,000,000 in credits have been awarded. (35 ILCS 25/30)

Economic Development for a Growing Economy (EDGE) Program
Eligible businesses or entities that enter into an agreement with the Illinois Department of Commerce and Economic Opportunity to invest in capital improvements and create new jobs in Illinois are eligible for a credit against corporate income tax. (35 ILCS 5/211; 86 Ill. Adm. Code 100.2198) Effective through Dec. 31, 2016, taxpayers may apply to the Department for increased or extended economic development credits if the taxpayer's project will be located in an area that satisfies standards for affordable workforce housing or affordable and accessible mass transit (a "location efficient" project). (35 ILCS 11/10) Additionally, the department will not enter into any new agreements after Dec. 31, 2016. (35 ILCS 10/5-77)

The Economic Development for a Growing Economy (EDGE) tax credit against Illinois corporate income tax is allowed for 15 years to eligible corporations certified by the Illinois Department of Commerce and Community Affairs that relocate their corporate headquarters to Illinois. (35 ILCS 10/5-45)

To qualify for EDGE credits, an applicant's project must: (1) Involve an investment of at least $5,000,000 in capital improvements to be placed in service in Illinois and employ at least 25 new employees within Illinois as a direct result of the project (2) Involve a specified amount of investment in capital improvements to be placed in service in Illinois and employ a certain number of new employees within Illinois, provided, also, that the project is designed to provide a substantial economic benefit to the state or (3) If the applicant has 100 employees or less, involve an investment of at least $1 million in capital improvements to be placed into service and employ at least five new employees within Illinois as a direct result of the project. (35 ILCS 10/5-20; 14 Ill. Adm. Code 527.30)


The actual amount of investment and new employees discussed above is determined by the Department of Commerce and Community Affairs and the Illinois Business Investment Committee.

For more information on the Economic Development for a Growing Economy (EDGE) Program, please click here.
 

  • Credit amount

The amount of the credit is equal to the incremental personal income tax generated by jobs created in Illinois under the Economic Development for a Growing Economy (EDGE) tax credit incentive program and is specified in the tax agreement between the taxpayer and the Department of Commerce and Community Affairs. The credit may be stated as a percentage of the incremental personal income tax attributable to the project or may include a fixed-dollar limitation. The business may apply no more than 60 percent of the maximum credit per year that would otherwise be available against its state income tax liability during the 15-year period. (35 ILCS 5/211; 35 ILCS 10/5-45)

If a taxpayer's location efficiency report is approved by the Department, the taxpayer may receive (1) up to 10 percent more than the maximum allowable EDGE tax credits, but not equal to or exceeding 100 percent of the taxpayer's tax liability; or (2) such other adjustment of those tax credits, including but not limited to extensions, as the Department deems appropriate. This provision is set to be repealed on Dec. 31, 2011. (35 ILCS 11/10)

Economic Development for a Growing Economy Tax Credit
A new jobs tax credit may be granted against adjusted gross income tax, insurance premiums tax, or financial institutions tax to foster job creation in Indiana. (IC 6-3.1-13-9; IC 6-3.1-13-11; IC 6-3.1-13-13 ) A taxpayer is not entitled to claim the credit for any jobs that are relocated from one site in Indiana to another. (IC 6-3.1-13-16)

For more information on the Economic Development for a Growing Economy Tax Credit, please click here.
 

  • Credit amount

The amount and duration of the credit, if awarded, will be determined by the Indiana Economic Development Corporation (IEDC). The IEDC may consider a number of factors in determining the amount of credit awarded, including the potential economic impact on the state economy, the amount of capital investment, the incremental payroll attributable to the project, and the costs to the state and the affected political subdivisions. (IC 6-3.1-13-17)

The total credit amount may not exceed the taxpayer's incremental income tax withholding. The credit cannot extend for a period of more than 10 years and no more than $10,000,000 may be awarded per year. The IEDC may set the credit at a predetermined amount or at a percentage of the "incremental income tax withholdings," i.e., the total amount withheld attributable to new employees under the project. (IC 6-3.1-13-5; 6-3.1-13-18)

New Jobs Tax Credit
A company or industry that enters into an agreement with a community college or vocational school and increases its base employment within the time set in the agreement is entitled to a credit for the tax year during which the agreement was signed. A corporation must increase its base-employment level by at least 10 percent within the time set in the agreement, or, if it is without a base-employment level, add new jobs within the agreed upon time. (Sec. 422.33(6), Code of Iowa)

A cooperative, as described in IRC Sec. 521, that is not required to file an Iowa corporate income tax return is an eligible business for purposes of the new jobs credit against corporate income taxes. (Sec. 15.333, Code of Iowa)

For more information on the New Jobs Tax Credit, please click here.
 

  • Credit amount

The credit is the product of 6 percent of the taxable wages upon which an employer must contribute to the state unemployment compensation fund multiplied by the number of new jobs or jobs directly related to new jobs created for the taxable year in which the taxpayer elects to take the credit. Any credit in excess of the liability may be credited to the liability for the next 10 tax years. (Sec. 422.33(6), Code of Iowa)

Promoting Employment Across Kansas (PEAK) Program
The Promoting Employment Across Kansas (PEAK) Program is meant to foster economic development and the creation of new jobs and opportunities for the citizens of Kansas through incentivizing the repatriation of business facilities, other operations and jobs from foreign countries and to incentivize the relocation of business facilities, other operations and jobs from other states to Kansas. During the 2010 and 2011 Legislative Sessions, subsequent changes to the PEAK Act were passed to broaden the eligibility criteria of companies that can apply. (Sec. 74-50,210-216, K.S.A)

For more information on the Promoting Employment Across Kansas (PEAK) Program, please click here.
 

  • Credit amount

Under PEAK, qualified companies that have relocated an existing business entity to Kansas or third parties performing services on behalf of such companies may retain 95 percent of employee withholding taxes under certain circumstances. (Sec. 74-50,212(b), K.S.A) For example, in 2013 and 2014, a qualified company that retains the employees of an existing business unit located in Kansas and enters into an agreement with the Secretary of Commerce is eligible to retain 95 percent of its Kansas payroll withholding taxes for such employees for a period of up to five years. In addition, for 2013 and 2014, the Secretary of Commerce may provide the benefits of the PEAK Act for situations where it is deemed necessary by the secretary that Kansas provide incentives for a company or its operations currently located in Kansas to remain in Kansas so as to keep its retained jobs. Furthermore, the secretary may use the PEAK Act in conjunction with other economic development programs in 2013 and 2014 to develop a retention package. (Sec. 74-50,212(e), (f) K.S.A)

Since the beginning with the 2011 tax year, a 95 percent individual income tax exemption (through an income tax credit mechanism) is available for certain Kansas-source income received by Kansas resident owners of qualified companies who materially participate in the business activities. An owner is treated as materially participating in the qualified company’s business activities only if the he or she is involved in the business activities of the qualified company on a regular, continuous and substantial basis. The credit can be claim for any tax year in which the qualified company qualifies for PEAK Act benefits. (Uncodified legislation, Ch. 2011-115 (S.B. 193), Laws 2011, Sec. 13(a),)

Kentucky Business Investment (KBI) Program
A tax credit is available under the Kentucky Business Investment (KBI) Program to eligible companies that enter into a tax incentive agreement with the Kentucky Economic Development Finance Authority (KEDFA) that creates jobs that otherwise would not exist in the Commonwealth. To receive the credit, the employer must incur eligible costs of at least $100,000, create and maintain an average annual number of at least 10 new full-time jobs and pay at least 90 percent of all new full-time employees a minimum wage of at least 125 percent of the federal minimum wage in counties certified for the enhanced incentives and 150 percent of the federal minimum wage in other counties throughout the term of the project. The employer must also provide benefits for all new full-time jobs equal to at least 15 percent of the minimum wage target established by the tax incentive agreement. If the employee does not provide benefits, it may still qualify for incentives if it provides full-time employees total hourly compensation equal to or greater than 115 percent of the minimum wage target established in the tax incentive agreement through hourly wages combined with employee benefits. (Sec. 154.32.020(2), K.R.S.)

For more information on the Kentucky Business Investment (KBI) Program, please click here.
 

  • Credit amount

Tax credits up to 100 percent of the corporate income or limited liability entity tax liability arising from the project are available. Wage assessment incentives are also available: up to 5 percent of gross wages of each employee in enhanced incentive counties and up to 4 percent of gross wages of each employee in other counties. Projects with an investment of more than $500,000,000 may receive an advanced disbursement. (Sec. 154.32-.020(2), K.R.S.)

The incentives are available for up to 15 years in enhanced incentive counties and up to 10 years in other counties. Incentives remain in place until the approved cost of the project is realized or for the term of the tax incentive agreement, whichever occurs first. Unused credits may be carried forward for the term of the agreement and expire at the maturity of the agreement. (Sec. 154.32-.040, .070, K.R.S.)

Unemployment Tax Credit Program
Employers are allowed a tax credit against the Kentucky corporation income tax and the limited liability entity tax for hiring persons classified as unemployed. The individuals hired must have been classified as unemployed for the 60 days immediately preceding the date of employment. In addition, they must remain in the employment of the taxpayer for at least 180 consecutive days during the taxable year in which the taxpayer claims the credit. The credit is available only when unemployed residents of Kentucky are hired; nonresidents do not qualify. (Sec. 141.065, K.R.S.)

The credit is not allowed for: (1) any person for whom the taxpayer received federally funded payments for on-the-job training; (2) any person who directly or indirectly owns more than 50 percent of the stock of the corporation, as determined under federal law; (3) if the taxpayer is an estate or trust, any person who is a grantor, beneficiary or fiduciary of the estate or trust; or (4) any person who is a dependent of the taxpayer or, if the taxpayer is an estate or trust, a dependent of a grantor, beneficiary or fiduciary of the estate or trust. (Sec. 141.065, K.R.S.)

For more information on the Unemployment Tax Credit Program, please click here.
 

  • Credit amount

Taxpayers are allowed a credit of $100 for each such hire. (Sec. 141.065, K.R.S.)

A controlled group of corporations is treated as a single employer; either a parent or a subsidiary corporation may claim the credit, but not both. In the case of S corporations, estates and trusts, the amount of the credit is apportioned pro rata among shareholders as of the last day of the taxable year, or pro rata among the estate or trust and the beneficiaries on the basis of the income of the estate or trust allocable to each. (Sec. 141.065, K.R.S.)

Kentucky Small Business Tax Credit (KSBTC) Program
Eligible small businesses can claim a credit against the individual income tax, the corporate income tax and the limited liability entity tax for small businesses that create and fill one or more eligible positions and invest $5,000 or more in qualifying equipment or technology. (Sec. 154.60.020(3)(b), K.R.S.)

For more information on the Kentucky Small Business Tax Credit (KSBTC) Program, please click here.
 

  • Credit amount

A maximum of $25,000 in credits is allowed for each small business, each year. A total of $3 million in credits may be issued each year. Unused credits may be carried forward for five years.

New Jobs Credit

A Louisiana corporation income tax credit is provided for each new full or part-time employee, residing and domiciled in Louisiana, who is hired to fill a position for a job in the state that previously did not exist. (Sec. 47:287.749, La. R.S.)

For more information on the Jobs Credit, please click here and look for code 224 on page 19.
 

  • Credit amount

The jobs credit cannot exceed 50 percent of the taxpayer's Louisiana corporation income tax liability and is determined by adding the carry over of unused credits plus the number of new eligible employees based on the following amounts: (1) $100 per eligible new employee; (2) $200 if the eligible employee is economically disadvantaged; or (3) $225 if the eligible employee is a resident of a neighborhood with an unemployment rate of 10 percent or more. (Sec. 47:287.749(B)(1), La. R.S.)

Only one of these amounts is allowed per eligible employee. Unused credits may be carried over for a maximum of five years. (Sec. 47:287.749(B)(2), La. R.S.)
 

Employer Credits for Hiring the Unemployed

An employer that hires as full-time employees, previously unemployed Louisiana residents and recipients of Family Independence Temporary Assistance Payment (ITAP) who are participating in the state's Family Independence Work Program (FIWP) program may be eligible for a credit against any Louisiana corporation income tax liability. (Sec. 47:6004(A)(1), La. R.S.)

For more information on Employer Credits for Hiring the Unemployed, please click here and scroll down to page 17.
 

  • Credit amount

The amount of the credit is $750 for each such new job. (Sec. 47:6004(A)(2), La. R.S.)


The Louisiana Quality Jobs Program

The Louisiana Quality Jobs Program provides gross annual payroll tax rebates to qualified employers that execute rebate contracts with the Louisiana Department of Economic Development. The Louisiana Department of Revenue will allocate the rebates from current collections of payroll taxes. The law specifies that the preexisting credit program will continue to apply to contracts already in effect prior to the conversion of the program to a rebate program. (Sec. 51:2452, La. R.S.) Employers must create at least five new jobs and have an annual gross payroll of at least $500,000 for businesses with at least 50 employees and at least $250,000 for businesses with under 50 employees. Contracts are valid for five years with an option to extend the contract for another five years. (Sec. 51:2454-2455, La. R.S.)

For more information on the Louisiana Quality Jobs Program, please click here.
 

  • Rebate amount

For new jobs paying $14.50 per hour plus benefits, the rebate is equal to 5 percent of gross annual payroll. For new jobs paying $19.10 per hour plus benefits, the rebate is equal to 6 percent, provided that at least 50 percent of the new employees holding jobs accept the benefits package. (Sec. 51:2453(1), La. R.S.)

The Enterprise Zone Program
Businesses that hire at least 35 percent of their employees who are residents of certain designated areas, were receiving some form of public assistance prior to employment and were considered unemployable by traditional standards or are physically challenged, are eligible for a tax credit. (Sec. 51:1787(3), La. R.S.)

For more information on the Enterprise Zone Program, please click here.
 

  • Credit amount

A one-time $2,500 credit is allowed for each new job created. If the entire credit cannot be used in the year it is claimed, the remainder may be applied against the income tax or corporate franchise tax for the succeeding 10 years or until the entire credit is used. (Sec. 51:1787(2)(a), La. R.S.)

Tax Credit for Hiring Certain First-Time Drug Offenders
Employers who provide full-time employment to individuals who have been convicted of a first time drug offense and are under the age of 25, are eligible for a tax credit. The employees must have certified that the employee has successfully completed a court-ordered drug treatment/rehabilitation program and worked for 180 days. (Sec. 47:297(K)(1)-(2), La. R.S.)

The credit is $200 per year, per employee, for a maximum of two years. (Sec. 47:297(K)(2), La. R.S.)

Maine

Jobs and Investment Tax Credit

Taxpayers, with the exception of public utilities, are allowed a jobs and investment tax credit against the Maine corporate income tax liability. To qualify for the credit, businesses must invest at least $5 million in personal property in one year and create at least 100 new jobs within two years of the date the property was placed in service. (36 M.R.S.A. Sec. 5215(3)(A)-(B))

For more information on the Jobs and Investment Tax Credit, please click here and here.
 

  • Credit amount

The amount of credit equals the "qualified federal credit," the portion of a credit allowed by the Internal Revenue Code of 1954 that is solely attributable to qualified investment with a location in the state, except that a credit may be taken with respect to used property, and may not be allowed with respect to an excluded investment. (36 M.R.S.A. Sec. 5215(2)(A))

The amount of credit used by a taxpayer for any taxable year may not exceed either $500,000 or the amount of tax otherwise due, whichever is less. Unused credits may be carried forward for up to seven years. (36 M.R.S.A. Sec. 5215(4))

Job Creation Tax Credit

A credit is allowed against Maryland corporate income tax for qualified business entities that create new jobs in Maryland, applicable to tax years beginning after 1995 and before 2014 for employees hired after Jan. 1, 1996. The credit may also be taken against Maryland personal income tax, insurance premiums tax and public service company franchise tax. However, the same credit cannot be applied more than once against different taxes by the same taxpayer. (Sec. 10-704.4, Tax General Art.; Sec. 6-304, Econ. Dev. Art.)

For more information on the Job Creation Tax Credit, please see click here.
 

  • Credit amount

The amount of the credit equals the lesser of (1) $1,000 times the number of qualified employees employed by the qualified entity during the credit year or (2) 2.5 percent of the wages paid by the qualified business entity during the credit year to the qualified employees. (Sec. 6-304, Econ. Dev. Art.)

The credit will be allowed ratably, with one-half of the credit amount allowed annually for two years beginning with the credit year. The credit earned by a qualified business entity may not exceed $1 million for any credit year. (Sec. 6-304, Econ. Dev. Art.)

In the case of employees working in a facility located in a revitalization area, the credit equals the lesser of (1) $1,500 times the number of qualified employees employed by the qualified entity during the credit year or (2) 5 percent of the wages paid by the qualified business entity during the credit year to the qualified employees. (Sec. 6-304, Econ. Dev. Art.)
 

Property tax credit for businesses that create new jobs

A taxpayer qualifying for a property tax credit provided by local government for the construction or expansion of its business premises and the hiring of new employees may also claim a Maryland corporate income tax credit based on percentages of the property tax liability as certified by the Department of Assessments and Taxation. (Sec. 10-704.8, Tax General Art.; Sec. 9-230, Prop. Tax Art.)

Alternatively, a taxpayer qualifying for an enhanced property tax credit provided by local government for the construction or expansion of its business premises and the hiring of new employees may claim a Maryland corporate income tax credit based on a percentage of the property tax liability as certified by the Department of Assessments and Taxation. (Sec. 9-230, Prop. Tax Art.)

For more informaton on the Businesses that Create New Jobs Tax Credit, please click here.


  • Credit amount

The amount of the credit is equal to the following percentage of the property tax imposed on the assessed value of those premises: (1) 28 percent in the first and second taxable years; (2) 21 percent in the third and fourth taxable years; and (3) 14 percent in the fifth and sixth taxable years. (Sec. 9-230, Prop. Tax Art.) 

A taxpayer qualifying for an enhanced property tax credit for the construction or expansion of its business premises and the hiring of new employees may claim a corporate income tax credit equal to 31.5 percent of the amount of property tax imposed on the increase in assessment of the qualified real and personal property for each of the first 12 taxable years for which the credit is allowed. (Sec. 9-230, Prop. Tax Art.)

Economic Development Incentive Program Credit-Expansion and Enhanced Expansion Projects

A tax credit is available for a project that relates to a facility that is located or will be located within the Commonwealth that generates substantial sales from outside the Commonwealth, generates a net increase in full-time employees (must be at least 100 full-time employees for enhanced expansion projects) within two years after project certification and maintains the employees for at least five years. (23A.3A Ma. Gen. Laws)
 

  • Credit amount

An investment tax credit of up to 10 percent for expansion and enhanced expansion projects may be applied to the corporate excise or personal income tax. In the case of expansion projects, the amount and duration of the credit must be based on the following factors: (1) the degree to which the project is expected to generate net new economic activity within the Commonwealth by generating substantial sales from outside the Commonwealth; and (2) the degree to which the project is expected to increase employment opportunities for residents of the project Economic Target Area (ETA) and of the Commonwealth; and (3) the economic needs of the project ETA as measured by income and employment levels of the ETA.

For enhanced expansion projects, the amount and duration of the credit is based on the following factors: (1) the degree to which the project is expected to generate net economic activity within the Commonwealth by generating substantial sales from outside the Commonwealth and (2) the degree to which the project is expected to increase employment opportunities for residents of the Commonwealth. (23A.3A Ma. Gen. Laws) No more than $5 million in enhanced expansion project credits may be issued in any year. (62.6(g)(1) Ma. Gen. Laws)

Economic Development Incentive Program Credit-Manufacturing Retention Project
A manufacturing project that relates to a facility that is: (1) located within a gateway municipality (a municipality with a population greater than 35,000 and a median household income below the Commonwealth’s average educational attainment rates that are below the Commonwealth’s average) that will generate substantial sales from outside the Commonwealth and (2) creates at least 25 permanent, full-time positions or retains at least 50 permanent, full-time employees within two years of project certification to be maintained for at least a five year period. (23A.3A Ma. Gen. Laws)
 

  • Credit amount

An investment tax credit of up to 40 percent is available for a manufacturing retention project that may be applied to the corporate excise or personal income tax, provided that the amount and duration of the credit is based on the following factors: (1) the degree to which the project is expected to generate economic activity within the Commonwealth by generating substantial sales from outside of the Commonwealth and (2) the degree to which the project is expected to retain or increase manufacturing employment opportunities for residents in the project gateway municipality and the Commonwealth. (23A.3A Ma. Gen. Laws) No more than $10 million in manufacturing retention project credits may be issued in any year. (62.6(g)(1) Ma. Gen. Laws)

The total amount of credits issued in any year may not exceed $25 million minus the credits granted and carry forward provisions from previous years. Unused credits may be carried forward for up to 10 years. (62.6(g)(1) Ma. Gen. Laws)

For more information on the Expansion, Enhanced Expansion Project and the Manufacturing Retention Project credits, please click here.

Job Opportunity Building Zones (JOBZ) Credit

Effective for tax years beginning after 2003, a refundable credit against corporate income tax is allowed for corporations that create new jobs in a designated job opportunity building zone. In addition to job credits, businesses are allowed an exemption from the individual and corporate tax for income attributable to Zone activities. (Sec. 469.318(1), Minn. Stats.)

A corporation that relocates operations into a zone must meet additional qualification requirements. The relocating corporation must increase full-time employment by a minimum of five jobs or 20 percent (whichever is greater) in its first full year of zone operations and maintain that level of employment for each year the zone designation applies. (Sec. 469.310(11)(d)(1), Minn. Stats.) Additionally, the corporation must enter a binding written agreement, pledging that the business will repay the tax benefits if it does not satisfy the job creation or investment requirements for the taxable year or for the taxes payable during the year in which the requirements were not met. (Sec. 469.310(11)(d)(2), Minn. Stats.)

For more information on the Job Opportunity Building Zones Credit, please click here and here.
 

  • Credit amount

The job credit is equal to 7 percent of the lesser of either (1) the increase in the business payroll in the zone since the year of designation or (2) the increases in total Minnesota payroll since the year of designation minus the increase in the number of full-time employees in the zone since designation multiplied by $30,000. (Sec. 469.318(1), Minn. Stats.)

The $30,000 base amount and the $100,000 maximum wage amounts will be adjusted yearly for inflation. (Sec. 469.318(3), Minn. Stats.)

Jobs Tax Credit

A nonrefundable tax credit for new jobs is allowed under certain circumstances for increasing employment levels in certain types of businesses located in Mississippi counties having a combination of high unemployment rates and low per capita income. (Miss. Code Ann. Sec. 57-73-21(1))

Mississippi counties are classified as either Tier One (developed), Tier Two (moderately developed) or Tier Three (less developed), and this classification system is used to determine the minimum number of jobs that a business enterprise must create in a given year before it qualifies for the credit. The actual classification of a specific county may be checked by contacting the Department of Revenue at the time of need. The classification ranking of counties is reviewed annually by Dec. 31. (Miss. Code Ann. Sec. 57-73-21(1))

The credit is available to permanent business enterprises in the following categories: (1) those primarily engaged in manufacturing, processing, warehousing, distribution, wholesaling, and research and development; (2) those designated by the Mississippi Development Authority as air transportation and maintenance facilities, final destination or resort hotels with at least 150 guest rooms, recreational facilities impacting tourism, and movie industry studios; or (3) telecommunications enterprises (excluded are commercial broadcast radio stations, television stations, and news organizations that primarily serve in-state markets), data or information processing enterprises, computer software development enterprises, or any technology intensive facility or enterprise. (Miss. Code Ann. Sec. 57-73-21(2); Miss. Code Ann. Sec. 57-73-21(3); Miss. Code Ann. Sec. 57-73-21(4); Miss. Code Ann. Sec. 57-73-21(13))

However, companies that handle, store, process or dispose of hazardous waste are ineligible for these credits. (Miss. Code Ann. Sec. 57-73-21(10)) Furthermore, companies created by the sale, merger, acquisition, reorganization, bankruptcy or relocation of existing companies from one Mississippi county to another are not entitled to this credit, but may succeed to any unused new jobs tax credit from the prior entities. (Miss. Code Ann. Sec. 57-73-21(8))

To receive the credit, the business must increase its employment by: (1) 20 or more new jobs in counties designated by the Department as Tier One (developed) areas (Miss. Code Ann. Sec. 57-73-21(4)); (2) 15 or more new jobs in Tier Two (moderately developed) areas (Miss. Code Ann. Sec. 57-73-21(3)); or (3) 10 or more new jobs in Tier Three (less developed) areas. The established increase in jobs must occur within one year and cannot be accumulated over several years. (Miss. Code Ann. Sec. 57-73-21(2))

Effective July 1, 2007, if (1) the employer is located in a Governor-declared disaster area and (2) the employer cannot maintain the number of employees required or use the credit carryforward as a direct result of the disaster, then an extension may be granted for two years. (Miss. Code Ann. Sec. 57-73-21)

For more information on the Mississippi Jobs Tax Credit, please click here.
 

  • Credit amount

The credit in a Tier One area is equal to 2.5 percent of the payroll of the new full-time employees for five years. The credit in a Tier Two area is equal to 5 percent of the payroll of the new full-time employees for five years. The credit in a Tier Three is equal to 10 percent of the payroll of the new full-time employees for five years. (Miss. Code Ann. Sec. 57-73-21(2)-(4))

The credit amounts are per year, and may be taken for five years after the year that the job was first created, but are limited in the aggregate to 50 percent of the taxpayer's state income tax liability in any one tax year. (Miss. Code Ann. Sec. 57-73-21(9)) Unused credits may be carried forward for up to five years.

Mississippi Advantage Jobs Incentive Program

A qualified business or industry that meets the qualifications specified in the Mississippi Advantage Jobs Act (see Miss. Code Ann. Sec. 57-62-3) may receive quarterly incentive payments from the Department of Revenue for up to 10 years. The qualified business or industry may elect the date on which the ten-year period will begin, but it can be no later than 60 months after the date that the business or industry applied for incentive payments. (Miss. Code Ann. Sec. 57-62-9(1))

The qualified business or industry may apply to the Mississippi Development Authority (MDA) to receive incentive payments for an additional five years if: (1) it creates at least 3,000 new direct jobs within five years after commencing commercial production; (2) the average annual wage of the jobs is at least 150 percent of the most recently published average annual wage or the most recently published average annual wage of the county in which the qualified business or industry is located determined by the Mississippi Department of Employment Security, whichever is the lesser; and (3) the job and wage requirements are met for four consecutive calendar quarters. (Miss. Code Ann. Sec. 57-62-9(2)(a))

In addition, the qualified business or industry may apply to the Mississippi Development Authority (MDA) to receive incentive payments for an additional ten years if: (1) it creates at least 4,000 new direct jobs within five years after commencing commercial production before the expiration of the additional period noted above; (2) the average annual wage of the jobs is at least 150 percent of the most recently published average annual wage or the most recently published average annual wage of the county in which the qualified business or industry is located determined by the Mississippi Department of Employment Security, whichever is the lesser; and (3) the job and wage requirements are met for four consecutive calendar quarters. (Miss. Code Ann. Sec. 57-62-9(2)(b))


If the employer is located in a Governor-declared disaster area and the employer cannot maintain the number of employees required as a direct result of the disaster, then an extension for the credit may be granted for two years. (Miss. Code Ann. Sec. 57-62-9(7))

For more information on the Mississippi Advantage Jobs Incentive Program please click here.
 

  • Credit amount

Quarterly incentive payments are equal to the net benefit rate multiplied by the actual gross payroll of new direct jobs for a calendar quarter as verified by the Mississippi Department of Employment Security, but not to exceed the amount of money previously paid into the Mississippi Advantage Jobs Incentive Payment Fund. (Miss. Code. Ann, Sec. 57-62-9(1))


Job Tax Credits for Permanent Business Enterprises Operating Certain Projects that Create at Least 3,000 Jobs

A permanent business enterprise engaged in operating a project of sufficient magnitude, and companies that are members of an affiliated group that includes such enterprises, can claim a credit for the creation of at least 3,000 new full-time jobs. (Miss. Code Ann., Sec. 27-7-22.17)

For more information on this job tax credit, please click here and scroll down to page 6.
 

  • Credit amount

The credit is equal to $5,000 annually for each new full-time employee and is available for each of the 20 years from the date that the credit begins. While the permanent business enterprise selects the starting date of the credit, the beginning date of the credit must be within five years from the date that the enterprise begins commercial operation. (Miss. Code Ann., Sec. 27-7-22.17)

For the year in which the credit begins, the number of full-time jobs is determined by using the monthly average number of full-time employees subject to Mississippi personal income tax withholding. Thereafter, the number of new full-time jobs is determined by comparing the monthly average of full-time employees subject to Mississippi withholding for the taxable year with the corresponding period of the prior taxable year. The permanent business enterprise and the members of the affiliated group become eligible for the credit once the enterprise creates or increases employment by 3,000 employees or more. (Miss. Code Ann., Sec. 27-7-22.17)

The credit is not allowed for any year of the 20-year period in which the overall monthly average number of full-time employees subject to Mississippi withholding falls below 3,000. The Department of Revenue will adjust the credit allowed each year for the net new employment fluctuations above 3,000. Effective July 1, 2007, if (1) the employer is located in a Governor-declared disaster area and (2) the employer cannot maintain the number of employees required or use the credit carryforward as a direct result of the disaster, then a credit extension may be granted for two years. (Miss. Code Ann., Sec. 27-7-22.17)

The credit that can be used each year is limited to an amount not greater than the total Mississippi corporate income tax liability of the permanent business enterprise and the total Mississippi corporate income tax liability of any member of the affiliated group that includes such an enterprise that is generated, or arises out of, the eligible project. (Miss. Code Ann., Sec. 27-7-22.17)
 

Job Tax Credits for Business Enterprises that Create at Least  450 New Jobs

Effective Jan. 1, 2005, any enterprise owning or operating a "project," as defined in the Mississippi Major Economic Impact Act (Miss. Code Ann., Sec. 57-75-5(f)), that creates at least 450 new jobs, is allowed a credit against Mississippi corporate income tax for each new full-time employee. (Miss. Code Ann., Sec. 27-7-22.18)
 

  • Credit amount

The credit is equal to $5,000 for each new full-time employee. (Miss. Code Ann., Sec. 27-7-22.18)

For the first year, the credit is determined based on the remaining monthly average of full-time employees subject to Mississippi personal income tax withholding from the commencement date to the end of the year. For subsequent years, the number of new full-time jobs created is determined by calculating the monthly average number of full-time employees subject to withholding for the year; the credit is not allowed for years in which the overall monthly average number of full-time employees subject to withholding falls below the minimum jobs requirement. (Miss. Code Ann., Sec. 27-7-22.18)

The credit may be claimed for ten years from the date the credit commences. the enterprise may select the commencement date. However, that date cannot be more than two years from the date the project becomes fully operational and must be a date on which the enterprise has at least 450 full-time employees subject to Mississippi personal income tax withholding. (Miss. Code Ann., Sec. 27-7-22.18)

For the first five years in which a tax credit is claimed under this section, any tax credit claimed but not used in any taxable year may be carried forward for five consecutive years from the close of the tax year in which the credits were earned. For the remainder of the ten-year period, any tax credit claimed under this section but not used in any taxable year may be carried forward for three consecutive years from the close of the tax year in which the credits were earned. The credit that may be utilized each year shall be limited to an amount not greater than the total state income tax liability of the enterprise that is generated by, or arises out of, the project. (Miss. Code Ann., Sec. 27-7-22.18)

Business Use Incentives for Large-Scale Development (BUILD) Act

The Missouri Business Use Incentives for Large-Scale Development Act (BUILD) authorizes financial incentives, including a credit against Missouri income taxes (excluding withholding taxes) or financial institution franchise taxes, to eligible economic development projects in eligible industries for the promotion of job creation. (Sec. 100.700, RSMo)

An eligible industry must invest a minimum of $15 million, or $10 million for an office industry, in an economic development project. The eligible industry must also create a minimum of 100 new jobs for eligible employees at the economic development project or a minimum of 500 jobs if the economic development project is an office industry. However, if an economic development project is an office industry located within a distressed community, the requirement is a minimum of 200 new jobs. (Sec. 100.710, RSMo)

An approved company must remit to the Missouri Development Finance Board a job development assessment fee, not to exceed 5 percent of the gross wages of each eligible employee whose job was created as a result of the economic development project. The assessment fee is in an amount not to exceed 10 percent if the economic development project is located within a distressed community. The fee is assessed for the purpose of retiring bonds that fund the economic development project. (Sec. 100.850, RSMo)

For more information on the Missouri Business Use Incentives for Large-Scale Development (BUILD) Act, please click here.
 

  • Credit amount

An approved company that has paid the assessment fee for debt reduction is allowed a tax credit equal to the amount of the assessment. The tax credit may be claimed against income or financial institution taxes, except withholding taxes, incurred during the tax period in which the assessment was made. (Sec. 100.850(4), RSMo)
 

Missouri Quality Jobs Program

Under the Missouri Quality Jobs Program, certain project types that create new jobs in the state may retain a percentage of the amounts withheld from the new employees instead of remitting those amounts to the state or may receive tax credits based on amounts withheld. The project types that are provided tax benefits under the program are small and expanding business projects, technology business projects, high-impact projects, job retention projects, and small business job retention and flood survivor relief projects. (Sec.  620.1881.3, RSMo)

For more information on the Missouri Quality Jobs Program, please click here.
 

  • Credit amount

For a small and expanding business project, if the average wage of the new employees equals or exceeds the county's average wage, the company may retain for three years, 100 percent of the withholding taxes resulting from the new jobs. If the average wage of the new employees is at least 120 percent of the county's average wage, the withholding amount may be retained for five years. (Sec. 620.1881.3(1), RSMo)

A technology business project may retain up to 6 percent of the withholding from the newly created jobs, depending on whether the wages equal or exceed the county's average wage, exceed 120 percent of the county's average wage, or exceed 140 percent of the county's average wage. The Department must issue a refundable tax credit for any difference between the amount of benefit allowed for a technology business project and the amount of withholding tax retained by the company, in the event the withholding tax is not sufficient to provide the entire amount of benefit due to the qualified company. (Sec. 620.1881.3(2), RSMo)

A high impact project may retain a percentage of withholding ranging from 3 to 4 percent, depending on whether the wages equal or exceed the county's average wage, exceed 120 percent of the county's average wage, or exceed 140 percent of the county's average wage. Additional percentages may be retained depending on local incentives. The Department must issue a refundable tax credit for any difference between the amount of benefit allowed for a high-impact project and the amount of withholding tax retained by the company, in the event the withholding tax is not sufficient to provide the entire amount of benefit due to the qualified company. (Sec. 620.1881.3(3), RSMo)

A qualified company may receive a job retention credit equal to up to 50 percent of the amount withheld from full-time employees at the project facility for a period of five years. The annual maximum amount of tax credit that may be issued to any qualified company for a job retention project or combination of job retention projects is $750,000 per year, but the maximum amount may be increased if certain conditions are met. However, no tax credits may be issued for job retention projects approved by the Department after August 30, 2013. (Sec. 620.1881.3(4), RSMo)

The maximum calendar year annual tax credits issued for the entire program must not exceed $80 million. (Sec. 620.1881.5, RSMo)

Nebraska

Nebraska Advantage Act

Operative Jan. 1, 2006, the Nebraska Advantage Act provides various tax incentives based on the amount of a taxpayer's investment, hiring and wages paid in the state. (Sec. 77-5701-5735, Neb. R.S.) The incentives include a total or partial refund of sales and use taxes (Sec. 77-5725, Neb. R.S.), a refundable credit against corporate or personal income tax or personal income tax withholding and a personal property tax exemption for qualifying personal property. (Sec. 77-5725, Neb. R.S.)

For more information on the Nebraska Advantage Act, please click here.
 

  • Credit amount and thresholds

The Nebraska Advantage Act sets out six tiers of investment, hiring and wage criterion that determine which incentives are available to a given taxpayer. (Sec. 77-5723, Neb. R.S.) The credit amount is determined by which of the six tiers of investment, hiring and wage criterion a taxpayer meets. The following outlines the 6 tiers and the corresponding credits available under each tier:

Tier 1—To qualify for Tier 1 incentives, a qualified business must invest at least $1 million in qualified property and hire at least 10 new employees. Tier 1 incentives include:

(1)

a refund of one-half of all sales and use taxes for purchases, including rentals, of qualified property used as part of the project;

(2)

a credit against income tax or withholding or payor tax liability equal to 3 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 60 percent of the Nebraska average wage for the year of the application;

(3)

a credit against income tax or withholding or payor tax liability equal to 4 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 75 percent of the Nebraska average wage for the year of the application;

(4)

a credit against income tax or withholding or payor tax liability equal to 5 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 100 percent of the Nebraska average wage for the year of the application;

(5)

a credit against income tax or withholding or payor tax liability equal to 6 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 125 percent of the Nebraska average wage for the year of the application; and

(6)

a credit against income tax equal to 3 percent of the investment made in qualified property at the project. (Sec. 77-5725-5726, Neb. R.S.)


Credits may be used against income tax withholding attributable to the new employees employed at the project, excluding any compensation in excess of $1 million paid to any one employee during the year. (Sec. 77-5726, Neb.R.S.)

Tier 2— To qualify for Tier 2 incentives, a qualified business must invest $3 million in qualified property and hire at least 30 new employees. Tier 2 incentives include:

(1)

a refund of all sales and use taxes for purchases, including rentals, of qualified property used as part of the project;

(2)

a credit against income tax or withholding or payor tax liability equal to 3 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 60 percent of the Nebraska average wage for the year of the application;

(3)

a credit against income tax or withholding or payor tax liability equal to 4 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 75 percent of the Nebraska average wage for the year of the application;

(4)

a credit against income tax or withholding or payor tax liability equal to 5 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 100 percent of the Nebraska average wage for the year of the application;

(5)

a credit against income tax or withholding or payor tax liability equal to 6 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 125 percent of the Nebraska average wage for the year of the application; and

(6)

a credit against income tax equal to 10 percent of the investment made in qualified property at the project.

(7) taxpayers who have a project for an Internet web portal may also receive a personal property tax exemption on certain eligible property. (Sec. 77-5725-5726, Neb. R.S.)


Credits may be used against income tax withholding attributable to the new employees employed at the project, excluding any compensation in excess of $1 million paid to any one employee during the year. (Sec. 77-5726, Neb. R.S.)

Tier 3— To qualify for Tier 3 incentives, a qualified business must hire at least 30 new employees. Tier 3 incentives include:

(1)

a credit against income tax or withholding or payor tax liability equal to 3 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 60 percent of the Nebraska average wage for the year of the application;

(2)

a credit against income tax or withholding or payor tax liability equal to 4 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 75 percent of the Nebraska average wage for the year of the application;

(3)

a credit against income tax or withholding or payor tax liability equal to 5 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 100 percent of the Nebraska average wage for the year of the application; and

(4)

a credit against income tax or withholding or payor tax liability equal to 6 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 125 percent of the Nebraska average wage for the year of the application. (Sec. 77-5725-5726, Neb. R.S.)


Credits may be used against income tax withholding attributable to the new employees employed at the project, excluding any compensation in excess of $1 million paid to any one employee during the year. (Sec. 77-5726, Neb. R.S.)

Tier 4— To qualify for Tier 4 incentives, a qualified business must invest at least $10 million in qualified property and the hire at least 100 new employees. Tier 4 incentives include:

(1)

a refund of all sales and use taxes for purchases, including rentals, of qualified property used as part of the project;

(2)

a credit against income tax or withholding or payor tax liability equal to 3 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 60 percent of the Nebraska average wage for the year of the application;

(3)

a credit against income tax or withholding or payor tax liability equal to 4 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 75 percent of the Nebraska average wage for the year of the application;

(4)

a credit against income tax or withholding or payor tax liability equal to 5 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 100 percent of the Nebraska average wage for the year of the application;

(5)

a credit against income tax or withholding or payor tax liability equal to 6 percent times the average wage of new employees times the number of new employees, if the average wage equals at least 125 percent of the Nebraska average wage for the year of the application;

(6)

a credit against income tax equal to 10 percent of the investment made in qualified property at the project; and

(7)

a personal property tax exemption for eligible property. (Sec. 77-5725-5726, Neb. R.S.)


Credits may be used against income tax withholding attributable to the new employees employed at the project, excluding any compensation in excess of $1 million paid to any one employee during the year. (Sec. 77-5726, Neb. R.S.)

Tier 5— To qualify for Tier 5 incentives, a qualified business must invest at least $30 million in qualified property and maintain at least the same number of equivalent employees as were employed in the base year for the following nine years. Tier 5 incentives include:

(1) a refund of all sales and use taxes for purchases, including rentals, of qualified property used as part of the project;
(2) taxpayers who have a project for an Internet web portal may also receive a personal property tax exemption on certain eligible property. (Sec. 77-5725-5726, Neb. R.S.)


Tier 6— To qualify for Tier 6 incentives, a qualified business must invest at least $30 million in qualified property and create at least 75 new jobs or invest at least $100 million and create at least 50 new jobs. Tier 6 incentives include:

(1) a refund of all sales and use taxes for purchases, including rentals, of qualified property used as part of the project;
(2) a credit against income tax or withholding or payor tax liability equal to 10 percent times the total compensation paid to all employees, other than base-year employees, excluding any compensation greater than $1 million paid to any one employee during the year;
(3) a credit against income tax equal to 15 percent of the investment made in qualified property at the project; and
(4) a personal property tax exemption for eligible property. (Sec. 77-5725-5726, Neb. R.S.)


There shall be no new project applications for benefits under Tier 1 and Tier 3 filed after Dec. 31, 2015. Agreements may be executed with regard to completed project applications filed on or before Dec. 31, 2015 for both of these tiers. (Sec. 77-5725, Neb. R.S.)

For a Tier 6 project, credits may be used against income tax withholding attributable to all employees employed at the project, other than base-year employees, and excluding any compensation in excess of $1 million paid to any one employee during the year. Agreements may be executed with regard to completed project applications filed before Jan. 1, 2016. (Sec. 77-5725-5726, Neb. R.S.)

New Hampshire

Coos County Job Creation Tax Credit

New Hampshire taxpayers may claim a credit against the business enterprise and the business profits taxes for creating new jobs in Coos County. However, the credit cannot be claimed if the job is eliminated. (N.H. R.S.A. 77-E:3-c)

For more information on the Coos County Job Creation Tax Credit, please click here.
 

  • Credit amount

The amount of the credit is equal to: (1) $750 per qualified tax credit employee if the employee is paid wages equal to or greater than 150 percent but less than 200 percent of the current state minimum wage; and (2) $1,000 per qualified tax credit employee if the employee is paid wages equal to or greater than 200 percent of the current state minimum wage. (N.H. R.S.A. 77-E:3-c.I)

This tax credit shall not apply to any tax period ending after Dec. 31, 2013. After being initially granted, the credit is renewable for four consecutive additional years, provided that no additional tax credit shall be granted for any tax period after Dec. 31, 2017. Unused credits may be carried forward for up to five years. (N.H. R.S.A. 77-E:3-c.I)

New Jersey

New Jobs Investment Tax Credit

A credit is allowed against the corporation business tax to taxpayers making qualified investments in new or expanded business facilities that result in new jobs, provided the number and compensation of the new jobs meet minimum requirements. The credit is allowed against the portion of the corporation business tax attributable to and a direct consequence of the investment. (N.J.S.A. Sec. 54:10A-5.6(a))

To qualify for the credit, the investment of small or mid-size business taxpayers must result in the creation of at least five new jobs. The investment of other taxpayers must result in the creation of at least 50 new jobs, with a median annual compensation of the threshold amount established for the particular tax year. (N.J.S.A. Sec. 54:10A-5.6(a)) Also, in order to claim this tax credit, the average book value of all real and tangible personal property in New Jersey must have increased over the prior year. (Instructions, Form 304, New Jobs Investment Tax Credit)

The resulting new jobs must have a minimum median annual compensation of $41,350 for tax years beginning in 2011. (Notice of Inflation Adjustment for New Jobs Investment Tax Credit, New Jersey Division of Taxation, June 15, 2011)

For more information on the New Jobs Investment Tax Credit, please click here and here.
 

  • Credit amount

The maximum credit allowed is equal to the amount of the taxpayer's qualified investment multiplied by the taxpayer's new jobs factor. (N.J.S.A. Sec. 54:10A-5.6(a)) A taxpayer's qualified investment is determined on the basis of a percentage of the cost of the property placed into service, depending upon the IRC Sec. 168 depreciation recovery period for the property, as follows: (1) 35 percent for property with a three-year recovery period; (2) 70 percent for property with a five-year recovery period; and (3) 100 percent for property with a seven-year recovery period. (N.J.S.A. Sec. 54:10A-5.8)
 

The credit is taken in five equal annual installments (N.J.S.A. Sec. 54:10A-5.6(a)), equal to the sum of one-fifth of the annual credit amount calculated for prior tax years plus one-fifth of the annual credit amount calculated for the current tax year. (N.J.S.A. Sec. 54:10A-5.7(a))
 

The credit may not reduce the corporation business tax liability by more than 50 percent of that portion of the tax, and may not reduce the tax below the minimum tax. (N.J.S.A. Sec. 54:10A-5.7(b))
 

Redevelopment Authority Project Tax Credit

A business subject to the corporation business tax and conducted at a location within a project associated with the New Jersey Urban Development Corporation is entitled to a credit against the entire net income component of the tax for each new employee at that location who is a resident of the municipality in which the project is located and who, immediately prior to employment by the taxpayer, was unemployed for at least 90 days or was dependent upon public assistance as their primary source of income. The project must be located in a qualified municipality and the business must consist primarily of manufacturing or other business that is not retail or warehousing oriented. (N.J.S.A. Sec. 55:19-13)

Any specific work or improvement, including lands, buildings, improvements, real and personal property or interest therein, acquired, owned, constructed, reconstructed, rehabilitated or improved by the New Jersey Urban Development Corporation or for the corporation under an agreement constitutes a project for purposes of the credit. (N.J.S.A. Sec. 55:19-3)

For more information on the Redevelopment Authority Project Tax Credit, please click here and here.
 

  • Credit amount

A credit of $1,500 for each of two years is allowed for each new employee. (N.J.S.A. Sec. 55:19-13)

New Mexico

High Wage Jobs Tax Credit—Qualifying High Wage Jobs

A refundable credit is available against an eligible employer's New Mexico "modified combined tax liability" for each new high-wage, economic-based job created. (N.M. Stat. Ann. Secs. 7-9G-1(A) and (G)) The term "modified combined tax liability" includes a corporation's state personal income tax withholding liability. (N.M. Stat. Ann. Sec. 7-9G-1(H)(4))
 

To be eligible for the credit, the high-wage job must: (1) have been created on or after July 1, 2004 and prior to July 1, 2015; (2) be occupied for at least 48 weeks of a "qualifying period" (defined as the 12 months beginning on the first day that an employee begins working in a new high-wage job, and the subsequent anniversaries); and (3) pay at least $40,000 if the job is located in a municipality with 40,000 or more residents, or at least $28,000 if the job is located in a smaller area. (N.M. Stat. Ann. Sec. 7-9G-1(H)(5)-(6))

In addition, a new high-wage job is only eligible for the credit if an employer's total number of employees with new high-wage jobs at a given location on the last day of the qualifying period exceeds the number of such jobs on the day prior to the day that the subject job was created. (N.M. Stat. Ann. Sec. 7-9G-1(D))

For more information on the High Wage Jobs Tax Credit, please click here and here.
 

  • Credit amount

The credit is equal to 10 percent of the wages and benefits distributed to an eligible employee in a new high-wage, economic-based job, but may not exceed $12,000 per employee. (N.M. Stat. Ann. Sec. 7-9G-1(B)) The credit may be claimed in the year in which the eligible job is created and in each of the following three years. (N.M. Stat. Ann. Sec. 7-9G-1(C))

If the credit exceeds the taxpayer's modified combined tax liability, then the excess must be refunded to the taxpayer. (N.M. Stat. Ann. Sec. 7-9G-1(G))

New York

Employment Incentive Credit

A taxpayer that qualifies for an investment tax credit (ITC) (other than at the pre-1987 optional rate applicable to research and development property) with respect to property the acquisition, construction, reconstruction, or erection of which commenced after 1986 is allowed an additional credit, the employment incentive credit (EIC), for each of the two tax years succeeding the year in which the ITC credit is allowed. (Art. 9-A, Sec. 210(12-D)(a)(i), Tax Law)

The EIC is allowable only if the average number of employees in New York (except general executive officers) during the taxable year is at least 101 percent of the average number of employees in New York (except general executive officers) during the employment base year. (Art. 9-A, Sec. 210(12-D)(a)(i), Tax Law)

If the taxpayer was not subject to the tax and did not have a tax year immediately preceding the tax year for which the ITC was allowed, but the average number of employees in New York (excluding general executive officers) is at least 101 percent of the average number of employees (excluding general executive officers) during the tax year in which the ITC was originally claimed, the EIC is allowed. (Art. 9-A, Sec. 210(12-D)(a)(i), Tax Law)

The EIC may not reduce tax liability to an amount less than the higher of the tax on minimum taxable income or the fixed dollar minimum tax. (Art. 9-A, Secs. 210(1)(c)-(d), Tax Law)

A taxpayer who takes the optional Research & Development Property ITC rate of 9 percent is not eligible to take the EIC for the same property. However, a taxpayer who elects to take the ITC for its R&D property at the regular ITC rate may avail itself of the EIC. (Art. 9-A, Sec. 210(12-D), Tax Law)

For more information on the Employment Incentive Credit, please click here.
 

  • Credit amount

The EIC is computed as follows: (1) 1.5 percent of the investment credit base if the average number of employees during the taxable year is less than 102 percent of the average number of employees in the employment base year (2) 2 percent of the investment credit base if the average number of employees during the taxable year is at least 102 percent and less than 103 percent of the average number of employees in the employment base year; and (3) 2.5 percent of the investment credit base if the average number of employees during the taxable year is at least 103 percent. (Art. 9-A, Sec. 210(12-D)(a)(ii)(C), Tax Law)
 

Excelsior Jobs Program

The Excelsior Jobs Program provides a jobs tax credit, an investment tax credit, a research and development (R&D) credit and a real property tax credit for up to ten years. (Art. 17, Sec. 355, Economic Development Law)

The program is available to businesses operating in New York predominantly as: (1) a financial services data center or a financial services back office operation (2) in manufacturing (3) in software development and new media (4) in scientific research and development (5) in agriculture (6) in the creation or expansion of back office operations in the state (7) in a distribution center or (8) in an industry with significant potential for private-sector economic growth and development in the state. (Art. 17, Sec. 353(1), Economic Development Law)
 

The determination of whether a business is operating predominantly in a specified industry will be based solely on the activity at the project location, without regard to operations at other locations in the state. (Art. 17, Sec. 353(2), Economic Development Law)

Every business approved for participation in the program is eligible to apply for the jobs tax credit, the investment tax credit, and the R&D credit. However, only certain categories of businesses are eligible to also apply for the real property tax credit.

Specifically, the real property tax credit is available to firms locating in certain distressed areas (i.e., investment zones) and to firms in targeted industries that meet higher employment and investment thresholds (i.e., regionally significant projects). Those thresholds are as follows: (1) scientific R&D, 20 jobs and $6,000,000 (2) agriculture, 20 jobs and $500,000 (3) manufacturing, 50 jobs and $5,000,000 (4) financial services, 300 jobs and $6,000,000 (5) back office, 300 jobs and $6,000,000 (6) distribution, 300 jobs and $30,000,000 (7) other, 300 jobs and $6,000,000. (Art. 17, Sec. 352(14), Economic Development Law)


For more information on the Excelsior Jobs Program, please click here and here.
 

  • Credit amount

Jobs component— A participant in the program is eligible to claim a credit for each net new job created in the state. The amount of the credit per job is equal to the product of gross wages and 6.85 percent. (Art. 17, Sec. 355(1), Economic Development Law)

Investment component— A participant in the program is eligible to claim a credit on qualified investments. The credit is equal to 2 percent of the cost or other basis for federal income tax purposes of the qualified investment. The investment component may not be claimed until a participant has received a certificate of tax credit; however, qualified investments made after the issuance of the certificate of eligibility, but before the issuance of the certificate of tax credit, may be claimed in the first taxable year for which the participant is allowed to claim the credit. Expenses incurred prior to the date when the certificate of eligibility is issued are not eligible to be included in the calculation of the credit. (Art. 17, Sec. 355(2), Economic Development Law)

R&D component— A participant in the program is eligible to claim a credit equal to 50 percent of the portion of the participant's federal R&D tax credit that relates to the participant's R&D expenditures in New York during the taxable year; however, the excelsior R&D tax credit may not exceed 3 percent of the qualified R&D expenditures attributable to activities conducted in the state. If the federal R&D credit has expired, then the R&D expenditures relating to the federal credit must be calculated as if the federal credit structure and definition in effect in 2009 were still in effect. (Art. 17, Sec. 355(3), Economic Development Law)

Real property tax component— A participant in the program who either qualifies as a regionally significant project or is located in an investment zone is eligible to claim an excelsior real property tax credit for a period of 10 years. In the first year, the credit equals 50 percent of the eligible real property taxes on the real property comprising the regionally significant project or located in the investment zone. The credit then phases down from 50 percent to 5 percent over the 10-year period (5 percent each year). (Art. 17, Sec. 355(4), Economic Development Law)

In calculating the excelsior real property tax credit and determining the maximum aggregate amount of that credit component in the preliminary schedule of benefits, the Commissioner must include any improvements projected to be made by the taxpayer to the property comprising the regionally significant project or located in the investment zone, as listed in its application for participation in the program. (Art. 17, Sec. 355(4)(d), Economic Development Law)

Economic Transformation and Facility Redevelopment Program
The Economic Transformation and Facility Redevelopment Program provides a fully refundable credit available to personal income taxpayers, agricultural cooperatives, general business corporations, banks, and insurance companies and consisting of four components: (1) a jobs tax credit component (2) an investment tax credit (ITC) component (3) a job training credit component (4) a real property tax credit component. (Art. 1, Sec. 35*2, Tax Law)
 

To be eligible for the Economic Transformation and Facility Redevelopment Program tax credit, the taxpayer must meet all the following requirements.

(1)

The taxpayer must be a participant or the owner of a participant in the economic transformation and facility development program. The commissioner of economic development must have issued a certificate of to the taxpayer or to an entity in which the taxpayer is an owner. A copy of the certificate is required to be attached to the taxpayer's report or return.

(2)

The taxpayer or the entity in which the taxpayer is an owner must be a qualified new business.

(3)

The taxpayer or the entity in which the taxpayer is an owner must create and maintain at least five net new jobs in the economic transformation area. (Art. 1, Sec. 35*2, Tax Law)


The benefit period for the tax credits is five consecutive taxable years, beginning with the first taxable year in which the five net new jobs are created. However, in no event may that benefit period start later than two years after the certificate of eligibility is issued. If, in any year of the benefit period, the taxpayer fails to maintain the required level of five net new jobs (measured quarterly), the taxpayer will not be allowed a credit for that year. Such failure to be allowed a credit will not extend the taxpayer's benefit period. (Art. 1, Sec. 35*2, Tax Law)

If the participant at the end of its benefit period has not created sufficient net new jobs and made sufficient qualified investments to achieve a benefit-cost ratio of at least 10 to one, the taxpayer will be required to add back as tax in the last year of its benefit period the portion of the economic transformation and facility redevelopment tax credits claimed in the years of its benefit period necessary to achieve a cost benefit ratio of 10 to one. (Art 1, Sec. 35*2, Tax Law)
 

  • Credit amount
  • Jobs tax credit component – 6.85 percent of the gross wages of each net new job created;

  • Investment tax credit (ITC) component – 10 percent of the cost of investments at a closed facility, with a facility-based cap of $8,000,000; 6 percent of the cost of investments elsewhere in an ETA, with a cap of $4,000,000 per entity (if the participant is a partnership, a limited liability company, or an S corporation, the $4,000,000 limitation is applied at the entity level);

  • Job training credit component – 50 percent of training expenses for employees displaced by a facility closure, up to $4,000 per employee per year (the employees for whom the expenditures are made must be employed in a full-time, full-year position primarily located at the site in the economic transformation area during the training, and for 180 days after its completion); and

  • Real property tax credit component (RPTC) – 50 percent of real property taxes for projects located entirely within the grounds of a closed facility, declining by 10 percent a year; 25 percent of real property taxes for projects elsewhere in an ETA, declining by 5 percent a year. (Art. 1, Sec. 35*2, Tax Law)

Credit for Creating Jobs

Taxpayers that meet specified eligibility criteria and that create a specified number of new jobs may claim a jobs creation credit against North Carolina personal income tax, corporate income tax, corporation franchise tax, and/or the insurance gross premiums tax. (Sec. 105-129.87, G.S.) The credit may be claimed against any one of the taxes listed or a combination thereof. Credit carry forwards may be divided between the taxes against which it is allowed without regard to the original election specifying the division of the credit. (Sec. 105-129.84(a), G.S.).

To qualify, a taxpayer must create the following number of new jobs, depending upon which development tier the taxpayer's business is located in: (1)15 jobs if the business is located in a development tier-three area; (2) 10 jobs if the taxpayer is located in a development tier-two area; and (3) five jobs if the taxpayer is located in a development tier-one area, urban progress zone, agrarian growth zone, or beginning with the 2013 tax year, a port enhancement zone. (Sec. 105-129.87(b), G.S.)

Jobs transferred from within the state, either from the taxpayer's own business or from a related member, are not considered new jobs for purposes of this credit. In addition, if the job is transferred to a different level tier or into or out of an urban progress zone or agrarian growth zone, the amount of the remaining installments may need to be recalculated. (Sec. 105-129.87(e), G.S.)

Taxpayers that cease to engage in a qualifying business activity after they have claimed the credit, may no longer claim any remaining installments of the credit but are not required to pay back any previously claimed installment. This also applies to corporate headquarters that no longer meet the job creation threshold requisite criteria. (Sec. 105-129.83(i), G.S.)

However, the credit is subject to recapture, plus interest, if the taxpayer was ineligible to claim the credit at the time the credit was initially claimed or if a final determination unfavorable to the taxpayer with respect to an environmental disqualifying event is made that is applicable to the year in which the activity occurred for which the credit was claimed. (Sec. 105-129.83(i), G.S.)

This credit is repealed for business activities that occur on or after Jan. 1, 2014. (Sec. 105-129.82, (G.S.))

For more information on the Credit for Creating Jobs, please click here and here.
 

  • Credit amount

The amount of the credit varies by tier designation as follows: $12,500 for businesses in tier one; $5,000 if located in tier two; and $750 if located in tier three. A taxpayer may claim an additional $1,000 if the business is located in an urban progress zone, an agrarian growth zone, or beginning with the 2013 tax year, a port enhancement zone, increased to $2,000 if the employee hired is a zone resident or a long-term unemployed worker. (Sec. 105-129.87(b), G.S.)

The credit must be taken in four equal installments beginning in the taxable year after the taxable year the new job is created. The credit is contingent upon maintaining the employee in the job for the full four years. If the taxpayer fails to maintain the jobs over the full four-year period, the taxpayer may no longer claim any future installments. (Sec. 105-129.87(d), G.S.)

The credit must be claimed within six months of the deadline for filing the return, including extensions. (Sec. 105-129.84(d), G.S.)

The total amount of all Article 3J credits (credits for jobs creation, business property investment and real property investment), including carryovers, may not exceed 50 percent of the cumulative amount of taxes against which they may be claimed for the taxable year, reduced by the sum of all other credits allowed against those taxes, except tax payments made by or on behalf of the taxpayer. (Sec. 105-129.84(b), G.S.)

Unused credit may be carried forward for the succeeding five years. (Sec. 105-129.84(c), G.S.)
 

Work Opportunity Tax Credit

Beginning with the 2007 taxable year, taxpayers allowed the federal work opportunity credit may claim a portion of the credit against North Carolina corporate income tax. However, this credit expires on Jan. 1, 2014. (Sec. 105-129.16G, G.S.)

Fore more information on the Work Opportunity Tax Credit, please click here.
 

  • Credit amount

The nonrefundable credit is equal to 6 percent of the federal credit allowed for wages paid during the taxable year for positions located in North Carolina. (Sec. 105-129.16G, G.S.)

Workforce Recruitment Credit for Hard-to-Fill Employment Positions
North Dakota employers are entitled to a credit for costs incurred during the tax year to recruit and hire employees for hard-to-fill employment positions for which the annual salary meets or exceeds the state average wage.

For more information on the Workforce Recruitment Credit, please click here.
 

  • Credit amount

The credit amount equals 5 percent of the salary paid for the first 12 consecutive months to the employee hired for the position. The taxpayer can claim the credit in the first tax year beginning after the employee has completed the first 12 consecutive months of employment. Unused credits can be carried forward for up to four taxable years. (Sec. 57-38-01.25, NDCC)

Ohio

Job Creation Tax Credit Program

A taxpayer may claim a refundable corporation franchise tax credit for new full-time jobs created pursuant to an agreement with the Tax Credit Authority. Under the agreement, the taxpayer is required to maintain operations at the project location for at least the greater of seven years or the term of the credit plus three years. (Sec. 122.17(B), Ohio R.C.; Sec. 122.17(M), Ohio R.C.; Sec. 5733.0610(A), Ohio R.C.)

For more information on the Credit for Ohio Job Creation Tax Credit Program, please click here and here.
 

  • Credit amount

Credits are available for up to 75 percent of withheld state income taxes. (Ohio Job Creation Tax Program Summary) The term of the tax credit shall not exceed 15 years, and the first taxable year, or first calendar year that includes a tax period, for which the credit may be claimed. (122.17(D)(2)(a), Ohio R.C.)

Job Retention Tax Credit Program
A refundable credit is available to eligible businesses with a total annual payroll of at least $20,000,000. However, credits will no longer be granted as of Jan. 1, 2014. (122.171(B)(3), Ohio R.C.)

For more information on the Job Retention Tax Credit Program, please click here.
 

  • Credit amount

Credits are available for up to 75 percent of withheld state income taxes for up to 15 years. In determining the percentage and term of the credit, the tax credit authority shall consider both the number of full-time equivalent employees and the value of the capital investment project. The credit amount may not be based on the income tax revenue for a calendar year before the calendar year in which the tax credit authority specifies the tax credit is to begin, and the credit shall be claimed only for the taxable years or tax periods specified in the eligible business' agreement with the tax credit authority. In no event shall the credit be claimed for a taxable year or tax period terminating before the date specified in the agreement. (122.171(B)(3), Ohio R.C.)


Conversion to Commercial Activity Tax (CAT) Credit

For each calendar period beginning prior to Jan. 1, 2030, there is allowed a nonrefundable tax credit against the tax levied each year on each qualifying taxpayer. The credit is allowed only to reduce the first one-half of any tax remaining after allowance of the credits that precede it. No credit shall be allowed against the second one-half of such remaining tax. Qualifying taxpayers must have filed a report with the Tax Commissioner prior to July 1, 2006. (Sec. 5751.53(B) and (D), Ohio R.C.)

A qualifying taxpayer is a taxpayer that has a qualifying Ohio net operating loss carry forward equal to or greater than $50,000,000 per person. (Sec. 5751.53(A)(4) and (11), Ohio R.C.)

For more information on the Commercial Activity Tax Credit, please click here.
 

  • Credit amount

The credit is equal to a designated percentage of the  taxpayer’s net deferred tax items apportioned to the state, minus all credits already used. The credit shall not exceed 100 percent of the taxpayer's liability. (Sec. 5751.53(A)(9) and (B), Ohio R.C.)

Research and Development New Jobs Credit

An income tax credit may be allowed to businesses that have a net increase in the number of full-time equivalent employees, including employees providing support services, who are engaged in computer services, data processing, or research and development in Oklahoma. (68 O.S., Sec. 54006)

The credit is allowed in each of the eight subsequent years following the year in which the taxpayer qualifies for the credit if the level of new employees is maintained in each of those years. (68 O.S., Sec. 54006(B))

In calculating the number of new employees, only those employees whose paid wages or salary of at least $35,000 during each year the credit is claimed may be included. The number of new employees is determined by comparing the monthly average number of full-time employees subject to Oklahoma withholding tax for the final quarter of the tax year with the corresponding period of the prior tax year. (68 O.S., Sec. 54006(C))

To be eligible for the credit, a new or expanding business must not include the existing employee positions of any business enterprise that was owned by a corporation, trust, joint venture, proprietorship, or partnership doing business in Oklahoma as of Jan. 1, 2005. (68 O.S., Sec. 54006(C))

Any credits allowed but not used in any taxable year may be carried over in order to each of the four years following the year of qualification and to the extent not used in those yearsto each of the next five years. (68 O.S., Sec. 54006(E))

For more information on the Research and Development New Jobs Credit, please click here.
 

  • Credit amount

The amount of the credit is equal to $500 for each new employee, up to a maximum of 50 new employees. (68 O.S., Sec. 54006(D))

The Oklahoma Quality Jobs Program

Qualifying companies that enter into a contract with the Oklahoma Department of Commerce are eligible to receive cash payments based on the salaries of new jobs that are created. To qualify for the program, the company must have a minimum payroll of $2,500,000 within three years of the first calendar quarter following the beginning of the contract. Qualifying companies must be engaged in either manufacturing, research and development, some jobs related to the mining of oil and gas, certain warehouse/distribution operations, transportation by air, flight training services, the federal civilian workforce of the Federal Aviation Administration, other support activities for air transportation, wind power electric generation equipment repair and maintenance, support activities for rail and water transport and sports teams and clubs. The business must offer basic health insurance coverage to all employees whose pay is included in the new payroll figures. Employees  must not be required to pay more than 50 percent of the healthcare premium and employees must be permitted to access the health coverage within 180 days of employment. At least 80 percent of the new employees must work at least 30 hours per week. All new jobs must reach an average equal to the average county wage where the project is located. (68 O.S., Sec.3603v.1)

For more information on the Oklahoma Quality Jobs Program, please click here and here.
 

  • Credit amount

The program provides quarterly cash payments of up to 5 percent of new taxable payroll directly to qualifying companies, for up to ten years. Companies that have been awarded a U.S. Department of Defense Contract may receive quarterly cash payments of up to 6 percent. Certain industries meeting NAICS classifications may receive quarterly payments for up to 15 years. (68 O.S., Sec. 3603v.1(A)(7)(a)(b) and Sec. 3604(A))


Small Employer Quality Jobs Program
Small businesses of 90 employees or less that generate at least 75 percent of their sales to out-of-state customers, in qualified industries are eligible to receive cash payments based on the salaries of new jobs that are created, upon entering into a contract with the Oklahoma Department of Commerce. Qualified industries include manufacturing, research and development, central administrative offices, warehouse/distribution operations, transportation by air, flight training services, other support activities for air transportation, wind power electric generation equipment repair and maintenance and support activities for rail and water transport. The program also covers specified service companies that generate 75 percent of their sales out-of-state. (68 O.S., Sec. 3603v.3(A)(1)(a)(1)-(9))

The qualifying small business must create between five and 15 new jobs, depending upon the municipality in which the small business is located, within 24 months after the contract start date. Companies is specified industries have up to 36 months to create the minimum number of new jobs required. New employees must be paid between 110 percent to 125 percent of the average county wage in which the job will be located. For counties with a personal poverty rate above 15 percent and an unemployment rate above 10 percent, new employees must be paid 100 percent of the average county wage. New employees must also be offered basic health insurance within 12 months of employment and the employee cannot pay more than 50 percent of their healthcare premium. (68 O.S., Sec. 3904(A))

For more information on teh Small Employer Quality Jobs Program, please click here and here.
 

  • Credit amount

The program provides quarterly cash payments of up to 5 percent of new taxable payroll directly to qualifying companies, for up to seven years. (68 O.S., Sec. 3904(A))


The 21st Century Oklahoma Quality Jobs Program
Companies engaged in qualified industries that generate at least 75 percent of their sales to out-of-state customers, are eligible to receive cash payments based on the salaries of new jobs that are created, upon entering into a contract with the Oklahoma Department of Commerce. Qualified industries include manufacturing, research and development, central administrative offices and research and development and testing divisions of other establishments, certain warehouse/distribution, air transportation, wind power electric generation equipment repair and maintenance, flight training services and other support activities for air transportation. This program also covers specified service companies that generate 50 percent of their sales out-of-state. (68 O.S., Sec. 3913(1)(a)(1)(2))

The qualifying company must hire at least 10 full-time employees within 12 quarters of the date it applies to the program. New employees must be paid an average annual wage equal to or exceeding the lower of 300 percent of the average of Oklahoma county wages or 300 percent of the average county wage for the county in which the applicant is located. New employees must also be offered basic health insurance within 12 months of employment and the employee cannot pay more than 50 percent of their healthcare premium. (68 O.S., Sec 3914(C)(1)-(4))

For more information on the 21st Century Oklahoma Quality Jobs Program, please click here and here.
 

  • Credit amount

After the first 12 quarters or until the company creates 10 new jobs, the credit is equal to up to 10 percent of new taxable payroll.  Prior to meeting these levels, the net benefit rate is equal to up to 7 percent. (68 O.S., Sec. 3913(11),(12))

Oklahoma PrimeWIN Prime Contractor Incentive Program
Prime contractors that receive a qualified federal contract in a basic industry may participate in the Quality Jobs Program, receiving benefits on the qualified labor hours generated under that federal contract by both the prime contractor and any qualified subcontractor which receives a portion of work under that federal contract. The prime contractor must perform at least 8 percent of the work on the federal contract, but not necessarily in the State of Oklahoma. (Oklahoma Department of Commerce, 2012 Oklahoma Incentives and Tax Guide, p. 23)

For more information on the Oklahoma PrimeWIN Prime Contractor Incentive Program, please click here and here.
 

  • Credit amount

The net benefit rate ranges from .25 percent to 2 percent of the reimbursable labor rate, as outlined in the federal contract. (Oklahoma Department of Commerce, 2012 Oklahoma Incentives and Tax Guide, p. 24)

Aerospace Engineer Workforce Tax Credit
Oklahoma aerospace companies hiring engineers are eligible for a credit.

For more information on the Aerospace Engineer Workforce Tax Credit, please click here.
 

  • Credit amount

The credit is equal to 10 percent of the compensation paid to an engineer during the first five years of employment, if the employee graduated from a college in Oklahoma. The credit is equal to 5 percent of the compensation if the employee graduated from a college outside of Oklahoma. The maximum credit is $12,500 for each employee per year. (68 O.S., Sec. 2357.303(B))

A credit is also for 50 percent of the tuition reimbursed to a new engineer graduate for the first four years of the graduates employment, depending on the date of hire. The graduate must have attended a qualified program at a public university in Oklahoma. (68 O.S., Sec. 2357.302)

These credits are set to expire on Jan. 1, 2015.

Job Creation Tax Credit

The Job Creation Tax Credit is available against the corporate net income, capital stock and franchise, personal income, insurance gross premiums, utilities gross receipts, bank shares, title insurance and trust company shares, and mutual thrift institutions taxes, for any employer who creates at least 25 new jobs or increases the number of employees by at least 20 percent within three years. The new jobs must be at the average hourly rate, excluding benefits, of at least 150 percent of the Federal minimum wage. (72 P.S., Sec. 8801-B, 8804-B)

For more information on the Job Creation Tax Credit, please click here and here.
 

  • Credit amount

A taxpayer may claim a credit of $1,000 per new job created, up to the maximum amount specified in the taxpayer's commitment letter. If the job is filled by an unemployed individual, the credit is increased to $2,500 per new job. The total amount of job creation tax credits that are available per fiscal year is $10.1 million (72 P.S., Sec. 1804-B).

The number of new jobs created in a year is the number by which the taxpayer's average employment per quarter exceeds the taxpayer's average employment per quarter in the previous year. (72 P.S., Sec. 8804-B)

Bonus Program Private Participation (Employment Tax Credit)

An employer who participates in the Bonus Program is entitled to a tax credit for hiring former public assistance recipients who agree to forego all benefits and return to full-time employment. (R.I. Gen. Laws, Sec.  40-6.3-4 and Sec. 44-39.1)

For more information on the Bonus Program, please click here and here.
 

  • Credit amount

The amount of the credit is $250 per participant when the participant has worked 24 consecutive months for the employer, not including the preliminary eight week training and work experience period. (R.I. Gen. Laws, Sec. 40-6.3-4)

The credit may not reduce tax liability to below $100. (R.I. Gen. Laws, Sec. 44-39.1-2)

Traditional Annual and Annual Small Business Job Tax Credits

Qualifying businesses may claim a credit against corporate income, personal income, insurance premiums and bank taxes for creating and maintaining at least 10 new jobs at a new or expanded facility in South Carolina. The credit is also available to businesses with 99 or fewer employees that increase employment by two or more full-time jobs and may be received only if the gross wages of the full-time created amount to a minimum of 120 percent of the county or state’s average per capita income, whichever is lower. (Sec. 12-6-3360(A) and (C)(2)(a), S.C. Code)

The credit is first claimed in the second year after the new job has been created. The credit is not available to a taxpayer in any year in which the taxpayer's net employment increase falls below 10 or below two for businesses with 99 or fewer employees. If a corporation adds additional new full-time jobs during the initial five-year period, then it can claim credits for those jobs for five years following the year in which the jobs were created. (Sec. 12-6-3360(C)(1),(2)(a) and (D), S.C. Code)
 

A taxpayer who makes a capital investment of at least $50 million at a single site within a three-year period may elect to calculate the number of new jobs by comparing the monthly average number of full-time jobs subject to South Carolina personal income tax withholding at the site in the tax year with the monthly average for the prior tax year. A single site is a stand-alone building, regardless of whether several stand-alone buildings are located in one geographical location. This new job calculation is allowed for a five-year period commencing in the year in which the $50 million investment is completed. (Sec. 12-6-3360(F)(2)(a), S.C. Code)
 

Qualifying businesses include manufacturing facilities, tourism facilities, processing facilities, warehousing facilities, distribution facilities, research and development facilities, corporate office facilities, qualifying service-related facilities,extraordinary retail establishments, agribusiness operations, qualifying technology intensive facilities and retail facilities and service-related industries located in the least-developed counties. (Sec. 12-6-3360(A), S.C. Code)

For more information on the Job Tax Credit, please click here.
 

  • Credit amount

The 12 counties with a combination of the highest unemployment rate and lowest per capita income are designated “Tier IV” counties. The amount of the credit in Tier IV counties is equal to $8,000 for each new full-time job created.

The 12 counties with a combination of the next highest unemployment rate and next lowest per capita income are designated “Tier III” counties. The amount of the credit in Tier III counties is equal to $4,250 for each new full-time job created.

The 11 counties with a combination of the next highest unemployment rate and the next lowest per capita income are designated “Tier II” counties. The amount of the credit in Tier II counties is equal to $2,750 for each new full-time job created.

The 11 counties with a combination of the lowest unemployment rate and the highest per capita income are designated “Tier I” counties. The amount of the credit in Tier I counties is equal to $1,500 for each new full-time job created. (Sec. 12-6-3360(B)(1)-(4), (C)(1), S.C. Code)

If the business increases employment by two or more full-time jobs but the gross wages do not amount to a minimum 120 percent of the county’s or state’s average per capita income, whichever is less, then the amount of the initial job credit is as follows: (1) $4,000 for each new full-time job created in Tier IV counties; (2) $2,125 for each new full-time job created in Tier III counties; (3) $1,375 for each new full-time job created in Tier II counties; and (4) $750 for each new full-time job created in Tier I counties. (Sec. 12-6-3360(C)(2)(b), S.C. Code)


Businesses operating in a business or industrial park jointly established and developed by a qualified group of counties pursuant to Sec. 13, Art. VIII, of the South Carolina Constitution are eligible for an additional $1,000 credit per job created. (Sec. 12-6-3360(E)(1), S.C. Code)

A business who creates new jobs at a property where a response action has been completed pursuant to a nonresponsible party voluntary cleanup contract under the Brownfields Voluntary Cleanup Program, may claim an additional $1,000 credit for each new full-time job created. The additional credit is available for five years, beginning in the tax year following the creation of the job. (Sec. 12-6-3360(E)(2), S.C. Code)

The credit may not exceed 50 percent of a taxpayer's annual tax liability. (Sec. 12-6-3360(K)(2)(a), S.C. Code) Except for employees in Tier IV counties, the maximum aggregate credit that may be claimed in any tax year for a single employee is $5,500. (Sec. 12-6-3360(N), S.C. Code)

Unused credits may be carried forward for up to 15 years. (Sec. 12-6-3360(K)(b)(3), S.C. Code)
 

Moratorium on Corporate Income and Insurance Premium Taxes for Certain Companies Investing and Creating Jobs in State

A taxpayer creating and maintaining at least 100 full-time new jobs at a manufacturing, processing, warehousing, distribution, research and development, corporate office, tourism, extraordinary retail establishment, qualifying technology intensive facility, or qualifying service-related facility may petition for a moratorium on corporate income taxes or insurance premium taxes for the 10 taxable years beginning the first full taxable year after the taxpayer qualifies and ending either 10 years from that year or the year when the taxpayer's number of full-time new jobs falls below 100, whichever is earlier. (Sec. 12-6-3367(A), S.C. Code)

To qualify for the moratorium, a taxpayer must create at least 100 full-time new jobs at a facility in a county:

  • with an average annual unemployment rate of at least twice the state average during each of the last two completed calendar years, based on the most recent unemployment rates available, or that is one of the three lowest per capita income counties, based on the average of the three most recent years of available average per capita income data; and invest at least 90 percent of the total investment in South Carolina in the moratorium county; or

  • create at least 100 full-time new jobs and invest at least $150 million at a manufacturing facility in a county with an average annual unemployment rate of at least twice the state average during each of the last two completed calendar years, based on the most recent unemployment rates available, or that is one of the three lowest per capita income counties, based on the average of the three most recent years of available average per capita income data;

  • create at least 100 full-time new jobs, and invest at least $150 million at a manufacturing facility in a second county that is designated as distressed, least developed, or underdeveloped pursuant to Sec. 12-6-3360, S.C. Code, and invest at least 90 percent of its total investment in South Carolina in one or both of these counties: (1) county with an average annual unemployment rate of at least twice the state average during each of the last two completed calendar years, based on the most recent unemployment rates available, or that is one of the three lowest per capita income counties, based on the average of the three most recent years of available average per capita income data, (2) county with an average annual unemployment rate of at least twice the state average during each of the last two completed calendar years, based on the most recent unemployment rates available, or that is one of the three lowest per capita income counties, based on the average of the three most recent years of available average per capita income data. (Sec. 12-6-3367(B)(1), S.C. Code)
     

  • Credit amount

The moratorium is available on the portion of the taxpayer's corporate income tax liability that represents the ratio of the company's new investment in the qualifying county to its total investment in South Carolina. (Sec. 12-6-3367(C), S.C. Code)

For a taxpayer who creates and maintains at least 200 new full-time jobs within five years from the date that the taxpayer creates the first full-time new job at the facility, the moratorium is for 15 years or until the taxpayer's number of full-time new jobs falls below 200, whichever is earlier. (Sec. 12-6-3367(E)(1), S.C. Code)
 

Family Independence Tax Credit

A taxpayer can claim a credit against the corporate income or insurance premiums taxes for a percentage of the wages of employees who had received Family Independence (AFDC) payments for three months immediately prior to becoming employed by the taxpayer. (Sec. 12-6-3470, S.C. Code)

Qualified employees must be employed under the same terms as other employees. An employer must make health insurance coverage available to qualified employees. However, the employer is not required to pay for all or part of a qualified employee's health insurance coverage if the employer does not pay for all or part of the coverage for its other employees. The credit is not available if another employee was terminated or forced to resign in order to hire the former Family Independence (AFDC) payment recipient for the purpose of obtaining the tax credit. (Sec. 12-6-3470, S.C. Code)

For more information on the Family Independence Tax Credit, please click here.
 

  • Credit amount

The credit amount is: (1) 20 percent of the wages paid for each full month of employment during the first 12 months of employment; (2) 15 percent of the wages paid for each full month of employment during the second 12 months of employment; and (3) 10 percent of the wages paid for each full month of employment during the third 12 months of employment. (Sec. 12-6-3360(A), S.C. Code)

A taxpayer who employs a former Family Independence (AFDC) payment recipient full time in a distressed or at least developed county may claim an additional credit of $175 for each full month during the first 36 months of employment. (Sec. 12-6-3360(B), S.C. Code)

The maximum credit that may be claimed for a single employee under this credit and the new jobs credit combined is $5,500 per tax year. However, the $5,500 limit does not apply to employees employed in Tier IV counties. Unused credits may be carried forward for up to 15 years. (Sec. 12-6-3470(A) and (F), S.C. Code)

Enterprise Zone Act of 1995 – Job Development Credit

A qualified business that has met the minimum job creation and capital investment requirements provided in a revitalization agreement with the state may claim a job development credit against its personal income tax withholding liability for new jobs created in South Carolina. To qualify for the credit, the taxpayer must create at least 10 new jobs within five years of the effective date of the revitalization agreement. Applicable for taxable years beginning after 2007, the credit is extended to banks. (Sec. 12-10-80, S.C. Code)
 

In order to claim a job development credit, the taxpayer must incur qualified expenditures. These include expenditures that are:

(1) incurred during the term of the revitalization agreement or within 60 days before the execution of the revitalization agreement, including a preliminary revitalization agreement; (2) authorized by the revitalization agreement; and (3) used for any of the following purposes:

  • training costs and facilities;

  • acquiring and improving real estate whether constructed or acquired by purchased, or in cases approved by the council, acquired by lease or otherwise;

  • improvements to both public and private utility systems, including water, sewer, electricity, natural gas, and telecommunications;

  • fixed transportation facilities, including highway, rail, air, and water;

  • construction or improvements of real property and fixtures constructed or improved primarily for the purpose of complying with local, state, or federal environmental laws or regulations;

  • employee relocation expenses associated with new or expanded technology intensive facilities as defined in Sec. 12-6-3360(M)(13) or a corporate headquarters that qualifies for the corporate headquarters relocation credit;

  • apprenticeship programs;

  • training for all relevant employees that enable a company to export or increase its ability to export its products, including training for logistics, regulatory and administrative areas connected to the company' export process, and other export process training that allows a qualified company to maintain or expand its business in the state; or

  • financing the costs of any of the purposes described above. (Sec. 12-10-80(13)(C)(1)-(3), S.C. Code)


A taxpayer who qualifies for this credit that is located in a qualified multicounty business or industrial park may claim a job development credit equal to the amount allowed for the county designated as having the lowest development status of the counties containing the park. The park must be developed and established on the geographical boundary of adjacent counties, and the written agreement concerning the park must require revenue from the park to be allocated to each county on an equal basis. Taxpayers that operate retail facilities and service-related industries may qualify for the credit in counties that are underdeveloped and not traversed by an interstate highway. (Sec. 12-10-80(I), S.C. Code)

For more information on the Job Development Credit, please click here and scroll down to page 3.
 

  • Credit amount

The credit is calculated by multiplying the maximum allowable credit by a percentage that is based on the county where the taxpayer is located.

The maximum allowable credit is limited to the lesser of withholding tax paid to the state on a quarterly basis or the sum of the following amounts:

  • 2 percent of the gross wages of each employee earning between $8.74 and $11.64 per hour;

  • 3 percent of the gross wages of each employee earning between $11.65 and $14.55 per hour;

  • 4 percent of the gross wages of each employee earning between $14.56 and $21.84 per hour; and

  • 5 percent of the gross wages of each employee earning more than $21.85 per hour. (Sec. 12-10-80(B)(1), S.C. Code)


The hourly gross wage figures must be adjusted annually by an inflation factor determined by the State Budget and Control Board. (Sec. 12-10-80(B)(2), S.C. Code)

 

The Coordinating Council for Economic Development may approve a waiver of 95 percent of the maximum allowable credit for a business that makes a significant capital investment. (Sec. 12-10-80(D)(2), S.C. Code)


A taxpayer may claim a percentage of its maximum allowable credit based on the county where the taxpayer is located and the county designation at the time that the taxpayer enters into a revitalization agreement as follows:

  • 100 percent in Tier IV counties;
  • 85 percent in Tier III counties;
  • 70 percent in Tier II counties; and
  • 55 percent in Tier I counties (Sec. 12-10-80(D)(1), S.C. Code)


The credit amount may not exceed the taxpayer's withholding tax liability. (Sec. 12-10-80(A)(1), S.C. Code)

A qualifying business may claim job development credits for up to 15 years. (Sec. 12-10-80(A)(5), S.C. Code)

A business that is current with respect to its withholding tax and other tax due and owing the state and that has maintained its minimum employment and investment levels identified in the revitalization agreement may claim the credit on a quarterly basis beginning with the first quarter after the Council's certification to the Department of Revenue that the minimum employment and capital investment levels were met for the entire quarter. If a qualifying business is not current with tax payments as of the date of the return on which the credit is claimed, without regard to extensions, the business may claim the credit only in an amount reduced by the amount of taxes due and owing to the state as of the date of the return. (Sec. 12-10-80(A)(2), S.C. Code)

Jobs Tax Credit

Businesses engaged in manufacturing, warehousing, distribution, processing, research and development, computer services, call centers, headquarters facilities and convention or trade show facilities are eligible for a franchise and excise tax credit. In order to receive the credit, the business must create at least 25 new full-time jobs and must make a required capital investment of either $500,000 in value of real, tangible personal property, or computer software owned or leased in Tennessee. The required capital investment is $10 million for convention or trade show facilities. (Sec. 67-4-2109(a)(5)(A) and (a)(7), T.C.A.)

Enterprises that make the required capital investment to create or expand a repair service facility primarily engaged in providing repairs for aircraft owned by unrelated entities as well as enterprises that promote high-skill, high-wage jobs in high-technology areas, emerging occupations, or skilled manufacturing jobs by making the required capital investment in an economically distressed county are also eligible for the credit. (Sec. 67-4-2109(a)(5)(B),(C), T.C.A.)

The credit may be allowed for new high-skill, high-wage, full-time employee jobs in high-technology areas, emerging occupations or skilled manufacturing, regardless of whether net employment is increased. The provision applies only to new jobs created by a taxpayer that fails to meet the net increase requirement because of worker layoffs or reductions where such workers are certified as having been adversely affected by foreign trade so as to be eligible for assistance in accordance with the United States Trade Adjustment Assistance Reform Act of 2002. (Sec. 67-4-2109(b)(3)(G), T.C.A.)

The Commissioner of Revenue and the Commissioner of Economic and Community Development, if determined to be in the best interests of Tennessee, may lower the number of jobs that must be created in order to qualify for the credit. However, the amount of the credit will also be reduced in direct proportion to the reduction in job creation. (Sec. 67-4-2109(b)(3)(I), T.C.A.)

For more information on teh Jobs Tax Credit, please click here and scroll down to the Business Tax Credits section.
 

  • Credit amount

The credit is equal to $4,500 for each job created. The credit first applies in the tax year in which the employer first satisfies the capital investment requirement and creates at least 25 new jobs. The credit may not exceed 50 percent of the combined franchise and excise tax liability. Unused credits may be carried forward for up to 15 years. (Sec. 67-4-2109(b)(1)(C)-(D), T.C.A.)

Counties where the average number of dislocated workers exceeds the average number of dislocated workers in the state or where the per capita income of the county is less than Tennessee’s average per capita income for the 24 months prior to the creation of any qualified job for which a credit is sought, are designated as “enhancement counties.” Upon determining that a county qualifies as an enhancement county, the Department of Economic and Community Development shall designate the county as a tier 1, tier 2 or tier 3 enhancement county based on unemployment rates, per capita income and poverty levels of all Tennessee counties using statistical data. (Sec. 67-4-2109(a)(2), T.C.A.)

An additional annual credit is allowed for businesses in tier 2 and tier 3 enhancement counties. If the business is located in a tier 2 enhancement county, the credit is allowed for three years, up to 100 percent of the taxpayer’s franchise and excise tax liability. If the business is located in a tier 3 enhancement county, the credit is allowed for five years, up to 100 percent of the taxpayer’s franchise and excise tax liability. However, unused credits may not be carried forward beyond the year in which the credit originated. Businesses in tier 2 and tier 3 enhancement counties have three and five years respectively to create the number of jobs required to receive the credit. (Sec. 67-4-2109(b)(2)(A), (b)(3)(C), T.C.A.)

If the qualified business is located in an area designated as an adventure tourism zone, the credit is allowed for a period of three years, beginning with the first year in which the business applies the credit. (Sec. 67-4-2109(b)(2)(C), T.C.A.)

In addition, a taxpayer that has established its international, national, or regional headquarters in Tennessee, or a taxpayer that has established an international, national, or regional warehousing or distribution hub in Tennessee, may be permitted to offset up to 100 percent of its combined franchise and excise tax liability by job tax credits or any carryforward thereof, if the Commissioner of Revenue and the Commissioner of Economic and Community Development determine that increasing the percentage of the offset is in the state’s best interests. The Commissioners will determine the percentage of tax liability allowed to be offset and the period during which the increased offset will continue. (Sec. 67-4-2109(b)(3)(F), T.C.A.)

If the qualified business involves a higher level of investment and job creation, the credit is increased to $5,000 per job and the annual credit period is determined as follows:

If the investment exceeds $1 million and at least 500 industrial wage jobs (a qualified job with wages equal to or greater than the state’s average occupational wage for the month of January of the year during which the job was created) are created, the annual credit is for a period of 20 years, beginning with the first year in which the business applies the credit. If the investment exceeds $500 million and at least 500 industrial wage jobs are created, the credit is allowed for a period of 12 years. If the investment exceeds $250 million and at least 250 industrial wage jobs are created, the credit is allowed for a period of six years (an integrated supplier or an integrated customer also qualifies for this credit, regardless of the level of capital investment or the number of jobs created). If the investment exceeds $100 million and at least 100 industrial wage jobs are created, the credit is allowed for a period of three years. If the investment exceeds $10 million and at least 100 qualified jobs are created that are considered headquarters staff employees and pay at least 150 percent of the state’s average occupational wage for the month of January of the year in which the jobs are created, the credit is allowed for a period of three years. (Sec. 67-4-2109(b)(2)(B)(i)-(vi), T.C.A.)

The annual credit may be used to offset up to 100 percent of the taxpayer’s franchise and excise tax liability. Unused credits may not be carried forward beyond the year in which the credit originated. The taxpayer is allowed a period of up to three years from the effective date of the business plan in order to make the required capital investments necessary to qualify for the credit. The period may be extended for up to two years or up to four years if the investment exceeds $1,000,000,000. (Sec. 67-4-2109(b)(2)(B)(vii), T.C.A.)

Utah Job Creation Tax Credits

Businesses locating or expanding in enterprise zones may be eligible to claim tax credits against the corporate and franchise income taxes for the creation of up to 30 full-time jobs per taxable year. Businesses primarily engaged in retail trade or public utilities as well as construction jobs are not eligible for the credit. (Utah Code, Sec. 63M-1-413)

For more information on the Job Creation Tax Credits, please click here.
 

  • Credit amount

A credit of $750 may be claimed by a business entity for each new full-time employee position created within the enterprise zone. An additional $500 tax credit may be claimed if the new full-time employee position created within the enterprise zone pays at least 125 percent of: the county average monthly nonagricultural payroll wage for the respective industry as determined by the Department of Workforce Services; or if the county average monthly nonagricultural payroll wage is not available for the respective industry, the total average monthly nonagricultural payroll wage in the respective county where the enterprise zone is located. An additional tax credit of $200 may be claimed for two consecutive years for each new full-time employee position created within the enterprise zone that is filled by an employee who is insured under an employer-sponsored health insurance program if the employer pays at least 50 percent of the premium cost for the year for which the credit is claimed. (Utah Code, Sec. 63M-1-413(1)(a)-(d))

A business entity that received a tax credit for one or more new full-time employee positions in a prior taxable year may claim a tax credit for a new full-time employee position in a subsequent taxable year if: the business entity has created a new full-time position within the enterprise zone; and the total number of full-time employee positions at the business entity at any point during the tax year for which the tax credit is being claimed is greater than the number of full-time employee positions that existed at the business entity at any point during the taxable year immediately preceding the taxable year for which the credit is being claimed. (Utah Code, Sec. 63M-1-413(2)(b)(i)-(ii))

If the amount of a tax credit under this section exceeds a business entity's tax liability under this chapter for a taxable year, the business entity may carry forward the amount of the tax credit exceeding the liability for a period that does not exceed the next three taxable years. (Utah Code, Sec. 63M-1-413(3))

Vermont

Vermont Employment Growth Incentive
A business may apply to the Vermont Economic Progress Council for approval of a performance-based employment growth incentive to be paid out of the business’s withholding account. A business whose application is approved and, in any year during the award period (the consecutive five years during which a business may add qualifying jobs and qualifying capital investments eligible for employment growth incentives), meets or exceeds its payroll target and either its jobs or capital investment target may file an annual return claiming the incentives. (32 V.S.A. Sec. 5930b)

For more information on the Vermont Employment Growth Incentive, please click here.
 

  • Credit amount

The value of the incentives is dependent upon the net fiscal benefit resulting from the projected qualifying payroll and qualifying capital investment. An incentive ratio shall be applied to the net fiscal benefit generated by the Council’s cost-benefit model to determine the maximum award the Council may authorize for each application it approves. The Council may establish a threshold for wages in excess of, but not less than, the wage threshold for individual applications the Council wishes to approve. The Council shall calculate an incentive percentage for each approved percentage as follows:

Authorized award amount ÷ the five-year sum of all payroll targets. (32 V.S.A. Sec. 5903b(b)(3))

The Department of Taxes will disburse the incentives over consecutive five-year periods, beginning with each award period year, provided that the incentive-triggering award period year payroll and job targets are maintained in each utilization period year for which an installment is claimed. Up to one-fifth of the total incentive amount shall be disbursed in the first of five consecutive utilization period years, to the extent the full amount of qualifying payroll was actually paid in that year. A full one-fifth of the total incentive amount shall be disbursed in each of the remaining four consecutive years, provided that the incentive-triggering targets are maintained. (32 V.S.A. Sec. 5903b(c)(1)(2))

Qualifying jobs, qualifying capital investment, and qualifying payroll in excess of the jobs, capital investment, and payroll targets for an award year shall be carried forward and counted toward future award period year targets, provided such excess jobs, investment, and payroll are maintained. (32 V.S.A. Sec. 5903b(c)(4))

Major Business Facility Job Tax Credit

For taxable years beginning before 2020, qualified companies are allowed a credit against Virginia corporate income tax, personal income tax, income tax on estates and trusts, business franchise tax, insurance license tax, and utility tax for the creation of new full-time jobs in Virginia either through the establishment or expansion of a major business facility or by engaging in any industry except for retail trade. (Sec. 58.1-439(A), Code of Virginia)

In order to be considered a "major business facility," the establishment or expansion of the company must also create at least 50 jobs for qualified full-time employees (the "threshold amount"). (Sec. 58.1-439(C), Virginia Tax Code) However, if a major business facility is located in an economically distressed area or in an enterprise zone during a credit year (the first taxable year following the taxable year in which the facility commenced or expanded), the threshold amount required to qualify for the credit is reduced to 25 jobs for qualified full-time employees. (Sec. 58.1-439(K), Code of Virginia)

The Virginia Economic Development Partnership will publish a list of all severely economically distressed areas at least annually. (Sec. 58.1-439(L), Code of Virginia)

For more information on the Major Business Facility Job Tax Credit, please click here.
 

  • Credit amount

The credit is equal to $1,000 per qualified full-time employee, over the threshold amount, employed during the credit year. The credit is allowed ratably, with one-third of the credit amount allowed annually for three years beginning with the credit year. The portion of the $1,000 credit earned with respect to any qualified full-time employee who is employed in the Commonwealth for less than 12 full months during the credit year will be determined by multiplying the credit amount by a fraction, the numerator of which is the number of full months that the qualified full-time employee worked for the major business facility in the Commonwealth during the credit year, and the denominator of which is 12. (Sec. 58.1-439(G), Code of Virginia)

A separate credit year and a three-year allowance period shall exist for each distinct major business facility of a single taxpayer, except for credits allowed for taxable years beginning Jan. 1, 2009, through Dec. 31, 2014, when a two-year allowance period shall exist for each distinct major business facility of a single taxpayer. (Sec. 58.1-439(G), Code of Virginia)

The amount of the credit shall not exceed the tax imposed for a taxable year. Any unused credit may be carried over for the next 10 succeeding taxable year. (Sec. 58.1-439(H), Code of Virginia)
 

Tax Credits for Certain Employers Hiring Recipients of Temporary Assistance to Needy Families

An employer whose business employs no more than 100 employees is entitled to a credit against the Virginia corporate income tax for a portion of salaries paid to employees who are recipients of Temporary Assistance for Needy Families (TANF). (Sec. 58.1-439.9, Code of Virginia)
 

  • Credit amount

The credit is equal to 5 percent of the annual salary paid to an employee that receives assistance. The credit may not exceed $750 per qualified employee. (Sec. 58.1-439.9(B), Code of Virginia)

Unused
credits may be carried over for the next three taxable years. The amount of the credit shall not exceed the tax imposed for the taxable year. (Sec. 58.1-439.9(D), Code of Virginia)

Economic Opportunity Tax Credits

A credit against the corporation net income tax may be claimed by qualified businesses that make a qualified investment in a new or expanded business facility in West Virginia and, as a result of the investment, create new full or part-time West Virginia jobs within three tax years. (W.Va. Code Sec. 11-13Q-4; W.Va. Code Sec. 11-13Q-5(a); W. Va. Code Sec. 11-13Q-6a; W.Va. Code Sec. 11-13Q-7; W.Va. Code Sec. 11-13Q-10(b)(1)) The job creation deadline for qualifying small businesses is 12 months. (W.Va. Code Sec. 11-13Q-10(b)(1)) The credit may be used to offset the corporation net income tax after applying the credit against any business and occupation tax and business franchise tax and before applying the credit against any personal income tax on flow-through business income. (W.Va. Code Sec. 11-13Q-7(e))

Qualified businesses include only those engaged in the activities of manufacturing (including high-tech computer and peripheral equipment manufacturing), information processing, warehousing, non-retail goods distribution, qualified research and development, the relocation of a corporate headquarters and destination-oriented recreation and tourism. (W.Va. Code Sec. 11-13Q-5(a); W.Va. Code Sec. 11-13Q-19)  Eligible taxpayers must meet the following new jobs thresholds: 10 new jobs for qualified small businesses; (W.Va. Code Sec. 11-13Q-10(b)(1)); 15 new jobs for corporate headquarters relocations; (W.Va. Code Sec. 11-13Q-5(a)) or 20 new jobs for high-tech manufacturing businesses and for all other taxpayers. (W.Va. Code Sec. 11-13Q-10a(b))

High-tech manufacturing businesses claiming the economic opportunity credit in taxable years are not allowed to include employees filling new jobs who: are related as defined under IRC §51 or owns 10 percent or more of the business as determined under IRC §267; or worked for the taxpayer during the six-month period ending on the date the taxpayer's qualified investment is placed in service or use and is rehired by the taxpayer during the six-month period beginning on the date taxpayer's qualified investment is placed in service or use. (W.Va. Code Sec. 11-13Q-10a(c)(1))

For more information on the Economic Opportunity Tax Credit, please click here.
 

  • Credit amount

The credit is determined by multiplying the amount of the taxpayer’s qualified investment based on the useful life of the qualified investment property by the new jobs percentage based on the number of new jobs created in the state attributable to the investment. (W.Va. Code Sec. 11-13Q-4; W.Va. Code Sec. 11-13Q-10(b)(2)) If the credit is claimed in connection with the relocation of corporate headquarters, the amount also includes the cost of reasonable and necessary relocation expenses. (W.Va. Code Sec. 11-13Q-5(e))

The credit may be claimed over a 10-year period at the rate of 10 percent of the amount beginning in the taxable year in which the qualified investment is placed in service or use, or, at the taxpayer’s option, in the next succeeding tax year. (W.Va. Code Sec. 11-13Q-4; W.Va. Code Sec. 11-13Q-10(b)(3))

High-tech manufacturing businesses eligible for the economic opportunity credit may claim the credit over a 20-year period at the rate of 100 percent of the tax attributable to a qualified investments. (W.Va. Code Sec. 11-13Q-10a(b)(2))

The qualified investment is determined by multiplying the net cost of eligible property by its applicable useful life percentage based on the following: 0 percent if useful life is less than four years; 33.33 percent if useful life is four years or more but less than six years; 66.66 percent if useful life is six years or more but less than eight years; and 100 percent if useful life is eight years or more. (W.Va. Code Sec. 11-13Q-8(b))

The new jobs percentage is based on the number of new jobs created in West Virginia that are directly attributable to the qualified investment. The percentage increases with the number of new jobs created as follows: 10 percent for small businesses that create at least 10 new jobs; 10 percent if at least 15 new jobs are created by relocation of corporate headquarters; 20 percent if at least 20 new jobs are created; 25 percent if at least 280 new jobs are created; and 30 percent if at least 520 new jobs are created. (W.Va. Code Sec. 11-13Q-5(a); W.Va. Code Sec. 11-13Q-9(c); W.Va. Code Sec. 11-13Q-10(b)(1))
 

An additional new jobs percentage of 5 percent may be claimed by a taxpayer if qualified investments equal $20 million or more and if at least 75 full-time construction laborers and mechanics are used when building or expanding the business facility for which the credit is being claimed. These construction laborers and mechanics must be paid an average wage equal to or greater than the prevailing wage. (W.Va. Code Sec. 11-13Q-9(g))

The number of new jobs created by the investment is determined by the net increase in employment by the business or controlled group of businesses in West Virginia over a base year level. The base year is the 12-month period immediately preceding the placement of qualified investment into service or use. (Instructions, Schedule WV/EOTC-1, West Virginia Economic Opportunity Tax Credit Computation Schedule)

Taxpayers that otherwise qualify for credit but do not meet the minimum job threshold requirements may claim a credit equal to $3,000 for each newly created full-time job paying at least $32,000 (indexed for inflation) in annual wages and benefits. The new jobs credit may be claimed for a five-year period beginning in the tax year that the employee is hired. (W. Va. Code 11-13Q-22(a))

The credit is allowed against 80 percent of the taxpayer's tax liability that is attributable to the qualified investment. If the median salary of the new jobs is higher than the statewide average nonfarm payroll wage, the credit is allowed against 100 percent of the taxpayer's tax liability that is attributable to the qualified investment. (W.Va. Code Sec. 11-13Q-7(b))

The annual offset factor for high-tech manufacturing businesses claiming the economic opportunity credit in taxable years is 100 percent of the tax attributable to a qualified investments. (W.Va. Code Sec. 11-13Q-10a(b)(3)) The median compensation of the new jobs must be greater than $45,000 per year as adjusted annually for inflation. (W.Va. Code Sec. 11-13Q-10a(c)(2))

Jobs Tax Credit

A jobs tax credit is available to any individual, estate, trust, partnership, limited liability corporation (LLC) or tax-exempt organization that is certified by the Wisconsin Economic Development Corporation. (Sec. 71.28(3q), Wis. Stats.)

For more information on the Jobs Tax Credit, please click here.
 

  • Credit amount 

The credit is equal to any of the following: the amount of wages that the claimant paid to an eligible employee in the taxable year, not to exceed 10 percent of such wages, as determined by the Department of Commerce (DOC); the amount of costs incurred by the claimant in the taxable year, as determined by the DOC, to undertake training activities. No credit may be allowed unless the claimant includes with the claimant's return a copy of the certification from the DOC for tax benefits. (Sec. 71.28(3q)(b)(1)(2), Wis. Stats.)

The maximum amount of credit that may be claimed by all entities for the period beginning on Jan. 1, 2010 and ending on June 30, 2013, is $14.5 million. (Sec. 71.28(3q)(c)(3), Wis. Stats.) However, the DOC is also authorized to reallocate unused angel investment and early stage seed investment credits to a person eligible for the jobs tax credit. (Sec. 560.205(3)(d), Wis. Stats.)

Job Creation Deduction
Taxpayers may claim a subtraction from federal income and franchise taxes based on the increase in the number of full-time equivalent employees that are employed in Wisconsin during the taxable year. (Wis. Admin. Code, Sec. 3.05(3))

Partnerships, limited liability companies and tax-option corporations cannot claim the deduction. However, the eligibility for, and the amount of, the deduction shall be based on the increase in the number of full-time equivalent employees employed by the partnership, limited liability company, or tax-option and the gross receipts of the partnership, limited liability company, or tax-option corporation. A partnership, limited liability company, or tax-option corporation shall compute the amount of deduction that each of its partners, members, or shareholders may claim and shall provide that information to each of them. (Wis. Admin Code, Sec. 3.05(5))

For more information on the Job Creation Deduction, please click here.
 

  • Credit amount

The deduction is equal to the number of full-time equivalent employees employed by the taxpayer in the state during the taxable year, multiplied by $4,000 for a business with gross receipts of no greater than $5 million in the taxable year or $2,000 for a business with gross receipts greater than $5 million in the taxable year. (Wis. Admin. Code, Sec. 3.05(3))

Enterprise Zone Jobs Credit
Businesses located within a designated enterprise zone that are certified to receive enterprise zone benefits are eligible for a jobs credit for increasing net employment. (Sec. 71.07(3w), Wis. Stats.)

For more information on the Enterprise Zone Jobs Credit, please click here and please scroll down to page 6 here.
 

  • Credit amount

The amount of the credit is calculated as follows:

1. Determine if the amount is the lesser of:
a. The number of full-time employees whose annual wages are greater than $20,000 in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year, minus the number of full-time employees whose annual wages were greater than $20,000 in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the area that comprises the enterprise zone in the base year.
b. The number of full-time employees whose annual wages are greater than $20,000 in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the state in the taxable year, minus the number of full-time employees whose annual wages were greater than $20,000 in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the state in the base year.
 
2. Determine the claimant's average zone payroll by dividing total wages for full-time employees whose annual wages are greater than $20,000 in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year by the number of full-time employees whose annual wages are greater than $20,000 in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year.
3. For employees in a tier I county or municipality, subtract $20,000 from the amount determined under subdivision 2. and for employees in a tier II county or municipality, subtract $30,000 from the amount determined under subdivision 2.
 
4. Multiply the amount determined under subdivision 3. by the amount determined under subdivision 1.
 
5. Multiply the amount determined under subdivision 4. by the percentage determined by the Wisconsin Economic Development Corporation, not to exceed seven percent. (Sec. 71.07(3w)(b), Wis. Stats.)
 
The Wisconsin Economic Development Corporation will determine if a county or municipality receives a tier I or tier II designation based on the county or municipalities unemployment rate, percentage of families with incomes below the poverty line, median family income, median per capita income and other significant or irregular indicators or economic distress, such as natural disaster or mass layoff.  (Sec. 238.399(6)(g), Wis. Stats.)

Source: National Conference of State Legislatures, 2013.

For more information, please contact Mandy Rafool or Aron Snyder at 303-364-7700 or statefiscal-info@ncsl.org.


Share this: 
NCSL Summit 2014
We are the nation's most respected bipartisan organization providing states support, ideas, connections and a strong voice on Capitol Hill.

NCSL Member Toolbox

Denver

7700 East First Place
Denver, CO 80230
Tel: 303-364-7700 | Fax: 303-364-7800

Washington

444 North Capitol Street, N.W., Suite 515
Washington, D.C. 20001
Tel: 202-624-5400 | Fax: 202-737-1069

Copyright 2014 by National Conference of State Legislatures