HB 197 Summary

• Creates a $1,000 tax credit for corporations that hire homeless persons residing in transitional, permanent supportive, or emergency shelter facilities and retain them for at least 6 months of continuous employment (80+ hours per 30-day period)

• Limits total annual tax credits to $2 million per calendar year, with pro rata allocation if applications exceed this amount

• Allows unused credits to carry forward for up to 5 years and establishes February 1 annual filing deadline with the Department of Revenue

• Imposes penalties of 200 percent of fraudulently claimed credits plus interest and third-degree felony charges for fraudulent claims

• Expires December 31, 2016, with reporting requirements extending to December 31, 2022 so the Legislature can evaluate whether wage tax revenue from hired employees exceeds the cost of forgone taxes