Job Creation Tax Credits
This state program does just what it says – it provides businesses locating in Allegany County with tax credits for creating new jobs. It applies to businesses relocating to Maryland, as well as businesses located here that expand.
Generally speaking, the credit usually is applied at two-and-one-half percent of the aggregate annual wages paid in all newly created, full time jobs. This is subject to $1,000 multiplied by the number of jobs created, and may not exceed $1 million per credit year.
However, in an Enterprise Zone, or a Department of Housing and Urban Development designated neighborhood, that credit increases to five percent of the annual wages for all new, full time positions. This credit is limited to $1,500 multiplied by the number of jobs created, and also may not exceed $1 million per credit year.
In addition, unused credits may be carried over for up to five years following the year in which the credit could first be used to reduce the tax liability. In order to qualify for the program, the business must create a minimum of 60 new, full time jobs over a 24 month period. For those businesses choosing to locate in an Enterprise Zone or an incorporated municipality, only 25 new, full time positions must be created.