A Look at Employer Incentives from the State of Maryland

We’re still reveling in the holiday spirit, but tax season seems to sneak up quickly after the New Year. In an effort to retain employers, reduce the cost of doing business, and attract out-of-state companies, the State of Maryland offers various incentives for employers based on the types of employees they hire and where the business is located. Knowing that the State offers these  incentives may help with the beginning-of-the-year tax blues.

Disabled Access Tax Incentive
Small businesses are eligible for two tax incentives to help cover the cost of providing reasonable accommodations for employees or customers with disabilities, such as sign language interpreters, readers, materials in alternative format (such as Braille or large print), the purchase of adaptive equipment, the modification of existing equipment, or the removal of architectural barriers.

The tax credit is available to businesses that have either revenues of $1,000,000 or less or 30 or fewer full-time workers. The maximum amount of the credit is $5,000. The credit can be used to cover a variety of expenditures, including: The amount of the tax credit is equal to 50% of the eligible access expenditures in a year, up to a maximum of $5,000. There is no tax credit for the first $250 of expenditures.

Empowerment Zone Employment Credit
The Empowerment Zone Employment Credit is an incentive, for businesses located in an Empowerment Zone, to hire employees who live in the zone, earning a tax credit of up to $3,000 per eligible employee. Empowerment Zones are distressed urban and rural areas nationwide that are in need of revitalization. The Empowerment Zone Initiative brings communities together through public and private partnerships to create the investment necessary for economic development. The Federal government assists these targeted communities by providing tax incentives, grants, loans and technical assistance. To determine if your business is located in an EZ, visit the HUD website at http://arcg.is/2h6LoNs.

The Federal Bonding Program
The Federal Bonding Program is sponsored by the U.S. Department of Labor and serves as a tool to secure the job placement of ex-offenders and other high-risk applicants by issuing Fidelity bonds to businesses who offer jobs to workers in “at risk” groups. These bonds are business insurance policies that protect the employer in case of any loss of money or property due to employee dishonesty.

The bond is given to the employer free-of-charge, and serves as an incentive to the company to hire a job applicant who is an ex-offender or has some other risk factor in their personal background. The employer is then able to employ the worker without taking any risk of dishonesty on the job. It insures the employer for any type of stealing by theft, forgery, larceny, or embezzlement.

The initial Fidelity bond is issued for a six-month period. A total of $5,000 bond coverage is usually issued, with no deductible amount of liability for the employer. Larger bond amounts can possibly be issued if the certified agency issuing the bonds has acquired a special bond package and has determined that larger bond amounts are appropriate. A list of worker qualifications is available at http://bit.ly/2h3yYp4. 

Renewal Community Employment Credit
Similar to the Empowerment Zone Employment Credit, the Renewal Community Employment Credit allows companies located within a Renewal Community (RC) to earn a tax credit of up to $1,500 for each of their employees who lives in the community. Renewal Communities are distressed urban and rural areas nationwide that are in need of revitalization

The Renewal Community Employment Credit is an incentive to businesses that are located in a renewal community to hire and retain employees who also live in the RC. Businesses are eligible for a wage credit of up to $1,500 per eligible employee.

The credit is 15% of the qualified wages paid during a calendar year, up to $10,000 per employee. Both newly hired and current employees are eligible. The credit is renewable each year, and there is no limit to the number of employees a business can claim, as long as each employee lives in the RC. Both full-time and part-time employees may qualify. Learn more about Renewal Communities at http://bit.ly/2h71OrO.

Work Opportunity Tax Credit Program
The Work Opportunity Tax Credit (WOTC) is a federal income tax credit that can be claimed by employers who hire employees from one of nine targeted groups.

The WOTC can be as much as:

• $2,400 for each new adult hire
• $1,200 for each summer youth hire
• $4,800 for each new disabled veteran hire
• $9,000 for each new long-term Temporary Assistance for Needy Families (TANF) recipient hired over a 2-year period 

To learn more about incentives for Maryland-based employers, visit http://bit.ly/2gw2x6e

Source: http://bit.ly/2gw2x6e