Job Creation Tax Credit

 

During my legislative tenure, I also created the Job Creation Tax Credit program which offers credits against firms’ Business Privilege Tax liability if they create either 25 new jobs or increase the number of employees by at least 20 percent within five years of the designated start date.  Program participants must also commit to maintaining operations in Philadelphia for five years. The annual amount of credits available for award is limited to two percent of the prior year’s Business Tax collections. 

Interested firms submit applications to the Department of Revenue.  Upon acceptance to the program, an agreement is executed between the business and the City that sets forth the designated start date and the number of jobs to be created. A business has up to five years to create the agreed upon number of jobs.  Upon doing so, the firm asks the Department of Revenue to certify the number of jobs created and wages paid.  The Department of Revenue conducts a payroll review of the company’s records to compare the number of jobs when the firm entered the program with the number of jobs at the time of review.  Firms that fail to substantially maintain existing operations for five years from the date the Certificate is first submitted to the Department or that fail to create the agreed upon number of jobs are required to refund the total amount of the credit or credits issued.

Under this program, over 2000 new jobs have been created that must pay at least the City’s Living Wage Standard, while also offering over $4 million in business tax relief.