Apr 22, 2022 by Maureen Hourihan
Maryland recently passed legislation that creates a state income tax credit match for the federal Work Opportunity Tax Credit (WOTC). WOTC is a federal tax credit program which incentivizes employers to hire individuals with barriers to employment. Maryland has created a nonrefundable state income tax credit which provides a credit of 50% of the federal WOTC based on eligible employees working in Maryland.
The Maryland Work Opportunity Tax Credit is effective 7/1/2022 and is applicable to all taxable years beginning after 12/31/2021, but before 1/1/2029. The credit must be taken on the current return. There is no carry forward to any other taxable year.
Please contact Julie Dietz if you are interested in taking this credit, or if you have any questions.