Businesses that create a minimum number of new full-time positions may be entitled to state income tax credits of up to $3,000 per job or $5,000 per job in a "revitalization area."
Provide an income tax credit of $3,000 per new job to a business that creates new full-time jobs. If the business locates in a revitalization area (state enterprise zone, federal empowerment zone, or DHCD Sustainable Community), the credit increases to $5,000 per new job.
The business may not claim more than $1 million in a credit year. The program is capped at $4 million in tax credits in a calendar year. Credits are certified on a first-come, first-served basis based on when the Maryland Department of Commerce (Commerce) receives the final application and the availability of credits.
Unused credits may be carried forward for five years.
- Declaration of Intent - A business may not claim any employees hired prior to the business notifying Commerce of its intent to seek certification for the Job Creation Tax Credit.
- Certification - A business must be certified as a qualified business entity eligible for the tax credit. To be certified, a business must submit applications to Commerce. Commerce will calculate the credit amount that the business entity is entitled to claim.
- Job Creation Minimums to Qualify:
- 60 jobs anywhere in the state
- 25 jobs in a JCTC Priority Funding Area
- 10 jobs in counties with (1) annual average employment less than 75,000 or (2) median household income less than two thirds of the statewide median household income
*subject to change, updated annually.
- Job must be a "net new" job to Maryland.
- The business must create the minimum number of jobs within a 24-month period.
- The positions must be filled for 12 months before the business applies for final certification.
- Qualified positions must be full-time and pay at least 120% of Maryland state minimum wage.
- As of July 1, 2017, 120% of State minimum wage is $11.10/hr.
- As of July 1, 2018, 120% of State minimum wage is $12.12/hr.
- The facility must be engaged in an eligible activity.
- The expansion or establishment of a business must be at a single location in the state. A single firm may have more than one eligible location, if each is certified and meets the requirements of the statute.
The Job Creation Tax Credit remains in effect until January 1, 2020, subject to extension by the Maryland General Assembly.
The application process requires the business to declare its intent to Commerce prior to creating new, qualified jobs. The business is encouraged to submit a Preliminary Application, along with the Employment Affidavit. The business must be certified as eligible for the tax credit by submitting a Final Application. Applications are reviewed on a first come, first served basis and Commerce is limited to certifying no more than $4 million in credits in a calendar year.
JCTC Application Materials:
For more information about JCTC contact:
Stacy Kubofcik, Tax Incentive Specialist
Maryland Department of Commerce, Office of Finance Programs
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