Tuesday, March 23, 2010
House Passes Job Creation Tax Credit
The House of Delegates passed the Governor’s job creation tax credit bill (HB 92) last week by a vote of 132-5, bringing the legislation closer to final passage. The Senate passed its version of the bill (SB 106) late last month. The two houses will now iron out the minor differences in the bills and send the legislation to the Governor for his signature.
The legislation 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.
As originally introduced, the amount of the credit was $3,000. The Maryland Chamber urged lawmakers to increase it to $5,000 to make the credit more of an incentive to employers considering hiring new employees.
If you have any questions, contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
