Job Creation Tax Credit (JCTC)

Provides tax credits to eligible businesses that create 25 or more full-time jobs or increase employment by 20% within three years from the start date. A minimum of 25% of all tax credits awarded each fiscal year will be allocated to businesses that have 100 or fewer employees.

Any business is eligible to apply if they can demonstrate the following:

• ability to create the number of jobs specified in the JCTC application
• leadership in the application, development or deployment of leading technologies
• financial stability
• the project's financial viability
• decision to expand or locate in the Commonwealth was due in part to the availability of Job Creation Tax Credits

A business may apply the tax credit to 100% of the business' state corporate net income tax, capital stock and franchise tax or the capital stock and franchise tax of a shareholder of the business if the business is a Pennsylvania S corporation, gross premiums tax, gross receipts tax, bank and trust business shares tax, mutual thrift institution tax, title insurance business shares tax, personal income tax or the personal income tax of shareholders of a Pennsylvania S corporation, or any combination thereof.

A $1,000 per-job tax credit will be given for jobs created within three years from the determined start date.

• business must agree to create 25 new full-time equivalent jobs or increase its number of full-time employees at the project site by at least 20% within three years of the start date. The start date will be the first day of the calendar year quarter in which the application is submitted unless the applicant requests a later start date.

• to be counted as new full-time employees, new employees must earn an average hourly wage rate of at least 150% of the federal minimum wage, excluding benefits. The business must also agree to maintain operations at the project site where the jobs will be created for a period of five years from the start date.

• new jobs shall be deemed created in year one to the extent that the business's average employment by quarter during year one exceeds the business's base employment. New jobs shall be deemed created in year two to the extend that the business's average employment by quarter during year two exceeds the business's average employment by quarter during year one. New jobs shall be deemed created in year three to the extent that the business's average employment by quarter during year three exceeds the business's average employment by quarter during year two.

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Please contact Larry Morgan for full details and assistance.