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.