JOB CREATION TAX CREDIT RECEIVES PERMANENT EXTENSION
In February of this year, Mayor Nutter signed into law an amendment to the Job Creation Tax Credit (JCTC) program, which permanently increases the benefit of the program to new and growing businesses in Philadelphia. The City of Philadelphia offers a Job Creation Tax Credit which may be applied against Business Income and Receipts Tax liability. Under the program, eligible businesses may claim a credit of an amount equal to $5,000 or 2% of the annual wages paid, whichever is higher, for each qualified new full-time job created in Philadelphia. Originally set to expire at the end of 2013, the $5,000 tax credit per new employee has been extended indefinitely.
The JCTC program is designed to encourage businesses to hire more people in the city by offering a credit to offset companies’ business taxes for each new job created in Philadelphia. The expansion of this program complements other recent changes to Philadelphia’s tax structure which make the city even more competitive as a business location, such as a two-year abatement of the Business Income and Receipts Tax for new companies and the implementation of single sales factor apportionment.
Tilahun Afessa, Director of Policy, Planning and Outreach for the Department of Revenue, says, “We believe employment growth is the key to remaining economically viable in our increasingly competitive region.” The recent economic decline prevented many businesses from hiring new employees, and with a more positive outlook, the City expects to see more businesses applying for the program and creating more jobs.
For more information on the Job Creation Tax Credit and to fill out an application please visit www.phila.gov/revenue . For additional information on resources to help your business grow in Philadelphia, please visit the City’s business portal at www.phila.gov/business.