Amendment #49 to H4165

Work Opportunity Tax Credit

Representatives Mirra of West Newbury, Jones of North Reading, Peterson of Grafton, Hill of Ipswich, Poirier of North Attleborough and deMacedo of Plymouth moves to amend the bill by inserting after at the end thereof the following new section:-

“SECTION XX. Chapter 63 of the General Laws, as appearing in the 2012 Official Edition, is hereby amended by inserting, after section 31N, the following new section:

Section 31O. (a) As used in this section, the following words shall, unless the context otherwise requires, have the following meanings:-

‘Qualified Recipient’, an individual who receives benefits from the comprehensive transitional assistance financial assistance program, pursuant to section 2 of chapter 18, and was initially hired by the taxpayer on or after July 1, 2015.

‘Sustained employment’, a period of employment that is at least 185 days during a taxable year.

(b) During the first taxable year a qualified recipient is employed with the taxpayer, each taxpayer is entitled to a credit against the excise due under this chapter in an amount equal to 25 percent, but in no event to exceed $5,000, of the gross wages paid by the taxpayer to a qualified recipient in the course of that qualified recipient’s sustained employment during the taxable year; provided, if the qualified recipient remains employed with the taxpayer for a second consecutive taxable year, each taxpayer is entitled to a credit against the excise due under this chapter in an amount equal to 50 percent, but in no event to exceed $10,000, of the gross wages paid by the taxpayer to a qualified recipient in the course of that qualified recipient’s sustained employment during the taxable year; and, provided further, if the qualified recipient remains employed with the taxpayer for a third consecutive taxable year, each taxpayer is entitled to a credit against the excise due under this chapter in an amount equal to 75 percent, but in no event to exceed $15,000, of the gross wages paid by the taxpayer to a qualified recipient in the course of that qualified recipient’s sustained employment during the taxable year.

(c) If a taxpayer is subject to a minimum excise under this chapter, the amount of credit allowed shall not reduce the excise to an amount less than the minimum excise.

(d) A taxpayer entitled to a credit under this section for any taxable year may carry over and apply to its excise for any 1 or more of the next succeeding 5 taxable years, the portion, as reduced from year to year, of those credits which exceed the excise for the taxable year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.”.

Additional co-sponsor(s) added to Amendment #49 to H4165

Work Opportunity Tax Credit