SB3165 Summary

• Creates a $2,100 income tax credit for each new employee hired on or after the effective date and employed for exactly 12 consecutive months during the taxable year, for taxpayers not receiving Economic Development for a Growing Economy Tax Credits.

• Credit applies to taxable years ending on or after December 31, 2010, and can be claimed against income tax liability under Section 201 or against withholding tax liability under Article 7.

• Excess credits exceeding a taxpayer's tax liability may be carried forward to subsequent taxable years, with earlier credits applied first.

• Defines "new employee" as a full-time employee hired to perform a job not previously performed by another employee, excluding employees transferred from related entities and family members with at least 5% ownership interest in the taxpayer.

• Taxpayers may elect to use all or part of the credit against withholding tax obligations, with such election made in the form prescribed by the Department and being irrevocable once made.