HB 398 Summary

• Establishes a refundable job creation income tax credit of $3,000 per new full-time employee for years one through three of continuous employment, available to employers who make capital investments of at least $50,000 and hire at least one new full-time employee per business location.

• Defines "new full-time employee" as a person employed for at least 1,750 hours per year who earns compensation at or above the self-sufficiency income standard and results in a net increase in the employer's full-time workforce; excludes previously employed workers whose positions were terminated and later rehired.

• Requires employers to submit certified statements to the Department of Taxation by March 31 identifying capital investments, number of new full-time employees hired, and tax credits claimed in the previous taxable year.

• Grants the Department of Taxation authority to verify capital investments and employment positions, maintain records of taxpayers claiming credits, audit credit amounts, and adopt necessary rules; taxpayers must file department certification with tax returns.

• Excess credits over tax liability due shall be refunded to the taxpayer; claims must be filed within 12 months following the close of the taxable year or the right to claim the credit is waived.