Job Creation Tax Credit (JCTC)

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Changes were made to the Job Creation Tax Credit (JCTC) that impact qualified positions that were filled on or after Oct. 1, 2021.. BENEFIT

JCTC provides an income tax credit to eligible businesses that locate or expand in the state and create a minimum number of net new full-time positions. The credit is equal to $3,000 per new job. The credit increases to $5,000 per new job if the business locates or expands in a revitalization area (state enterprise zone, federal empowerment zone, DHCD Sustainable Community, or Tier 1 County). The credit increases if the new full-time position is filled by a qualified veteran employee. The enhanced credit is equal to $4,000 per job that is filled by a qualified veteran employee or $6,000 per job that is filled by a qualified veteran employee in a revitalization area.

JCTC also provides an income tax credit to small businesses that hire at least one qualified veteran employee to fill a net new full-time position. The credit is equal to $2,500 for each qualified veteran employee who has filled the position for at least one year. A small business may not claim the credit for more than five qualified veteran employees in a credit year, or for a qualified veteran employee who is hired to replace a laid-off employee or an employee who is on strike, or for a Qualified Veteran Employee who has filled the position for less than one year. This credit is available starting in tax year 2021. For prior tax years, a small business may be eligible for the Hire Our Veteran Tax Credit.

_Note 1: Tier 1 Counties include: Allegany, Baltimore City, Caroline, Dorchester, Garrett, Kent, Somerset, Washington and Wicomico Counties._ ELIGIBILITY

To qualify for JCTC: Declaration of Intent - A business may not claim any employees hired prior to the business notifying the Department of Commerce ("Commerce") of its intent to seek certification for the JCTC. Certification - A business must be certified as a qualified business entity eligible for the tax credit. To be certified, a business must submit an application 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: _Allegany, Baltimore City, Calvert, Caroline, Carroll, Cecil, Charles, Dorchester, Garrett, Kent, Queen Anne's, Saint Mary's, Somerset, Talbot, Washington, Wicomico, and Worcester Counties_. This list is updated annually and subject to change. The facility must be primarily engaged in a qualifying activity. The expansion or establishment of a business must be at a single location in the state. A single business may have more than one eligible location if each is certified and meets the requirements of the statute. The business must create the minimum number of "net new" jobs within a 24-month period. The positions must be filled for 12 months before the business applies for final certification. The position must be paid at least 120% or 150% of the state minimum wage. For positions filled before Oct. 1, 2021, the position must pay at least 120% of state minimum wage.

For positions filled on or after Oct. 1, 2021, the position must: Pay at least the prevailing wage rate for an employee classification for which there is a prevailing wage rate under State Finance and Procurement Article 17-201, or 150% of the state minimum wage for any other employee…

Topic areas: Public Policy and Governance, Workforce Development.

Funding amount

This grant provides Varies in funding.

Deadline

Applications are accepted on a rolling basis; there is no single fixed deadline.

Who can apply

This opportunity is open to the following applicant types:

• Not specified by the program.

Eligibility

The program did not publish a separate eligibility statement. See the official opportunity page for the full eligibility criteria.

Agency

Job Creation Tax Credit (JCTC) is administered by Maryland Department of Commerce (MD Commerce), listed via Maryland Department of Commerce.