Tax incentives are a great way for businesses to offset the cost of hiring. Unfortunately, many businesses are not aware of all the workforce tax incentives that may be available to them. Navigating the criteria and requirements around tax incentives can also be overwhelming. AAWDC can help with awareness and navigation of federal and state tax credits available to businesses that employ people in specific populations. There may also be additional state and local tax credits available for creating qualified positions in Maryland and Anne Arundel County.
Maryland Disability Employment Tax Credit
Businesses that employ persons with disabilities may be eligible for the Maryland Disability Employment Tax Credit. This tax credit covers wages paid to and for childcare expenses and transportation expenses paid on behalf of qualified employees. Qualification of disabled persons is determined by the Division of Rehabilitation Services (DORS) in the Maryland State Department of Education and/or by the Maryland Department of Labor, Licensing and Regulation (DLLR).
Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. This tax credit is currently exhausted, but more funding could become available and will be offered on a first come, first served basis. Learn more at the U.S. Department of Labor website or the Maryland Department of Labor, Licensing and Regulation site.
Job Creation Tax Credit
Certain businesses that create new qualified positions in Maryland before January 1, 2020 may be eligible for the Job Creation Tax Credit based on the number of qualified positions created or wages paid for these positions. The credit may be taken against corporate income tax, personal income tax, insurance premium tax or public service company franchise tax.