The Senate Budget & Taxation Committee this week approved an amended version of Governor Martin O’Malley’s legislation to provide a tax credit to Maryland employers who hire an unemployed Maryland resident during 2010. The bill was amended to increase the amount of the credit from $3,000 to $5,000. The committee vote was a unanimous 15-0.
The Maryland Chamber thanks the committee for its work on this issue. Chamber Vice President of Government Affairs Ron Wineholt urged the committee to increase the credit to $5,000 during its February 2 hearing. “Employers must weigh the benefit of a one-time $3,000 credit against the ongoing costs of a new employee, as well as the paperwork, time and possible audits that would result from seeking a tax credit certification through DLLR. Therefore, we suggest that the hiring incentive be increased by raising the maximum credit amount to $5,000 per new hire,” Wineholt said.
The amended bill, SB 106, would provide a $5,000 income tax credit to employers that hire an unemployed Maryland resident during calendar year 2010 into a full-time position that is new or has been vacant for at least 6 months. Employers would obtain certification for the credit by submitting required documentation to DLLR, and claim the credit when filing their income tax return. If the employee works less than a year the credit would be pro-rated. Total credit amounts are capped at $250,000 per employer and $20 million for the total program.
The legislation will now be considered by the full Senate. If you have any questions, contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
About Will Burns