Budget Amendment ID: FY2022-S3-542

EHS 542

Disability Employment Tax Credit

Messrs. Feeney, O'Connor and Gomez moved that the proposed new text be amended by inserting after section X the following section: -

"SECTION X. Section 6 of chapter 62 of the General Laws, as most recently amended by section 57 of chapter 358 of the acts of 2020, is hereby amended by adding the following subsection:-

(x)(1) An employer that is not a business corporation subject to the excise under chapter 63, shall be allowed a credit equal to $5,000 or 30 per cent of the wages paid to each qualified employee with a disability in the first taxable year of employment, whichever is less, against the tax liability imposed by this chapter. Such employer shall be allowed a credit equal to $2,000 or 30 per cent of the wages paid to each qualified employee with a disability in each subsequent taxable year of employment, whichever is less, against the tax liability imposed by this chapter.  If a credit allowed by this subsection exceeds the tax otherwise due under this chapter, 100 per cent of the balance of such credit may, at the option of the taxpayer, be refundable to the taxpayer. In order to qualify, the employee with a disability shall be: (i) certified by the Massachusetts rehabilitation commission as meeting the definition of disability under the Americans with Disabilities Act, 42 U.S.C. section 12102; (ii) capable of working independently; (iii) physically or mentally impaired in a manner that constitutes or results in a substantial impediment to employment for the individual; and (iv) hired by the employer after July 1, 2021.

(2) To be eligible for a credit under this subsection: (a) the primary place of employment  and the primary place of residence of the employee shall be in the commonwealth; (b) the  business shall receive the applicable certification from the Massachusetts rehabilitation  commission that the employee qualifies not later than the day the employee begins work;  provided, that reasonable exceptions to this timeframe may be established through regulation;  and (c) the employee shall be employed by the business for a period of at least 12 consecutive  months prior to and in the taxable year in which the credit is claimed.

(3) An employer that is eligible for and claims the credit allowed under this subsection in a taxable year with respect to a qualified employee with a disability shall be eligible for such   credit in the subsequent taxable year with respect to such qualified employee. Any credit allowed under this subsection shall not be transferable.

(4) The secretary of health and human services, in consultation with the commissioner, shall promulgate regulations establishing an application process for the credit.

(5) The credit under this subsection shall be attributed on a pro rata basis to the owners, partners or members of the legal entity entitled to the credit under this subsection, and shall be allowed as a credit against the tax due under this chapter of such owners, partners or members, in a manner determined by the commissioner."