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Pennsylvania Forges Arms in the Fight for Job Creation

Pennsylvania is leading the charge for job creation, and it’s using tax credits as a weapon. The Pennsylvania Job Creation Tax Credit Program (JCTC) is one of many tax incentives created to encourage state Pennsylvaniaeconomic development. According to program guidelines from the Pennsylvania Department of Community and Economic Development, the JCTC is a key component of Pennsylvania’s plan to develop “a flexible arsenal of economic development incentives for Pennsylvania business to lead the way into the 21st century.”[1]

The JCTC tax credit is available to businesses that, within three years from a negotiated start date, create 25 or more jobs or increase employment by 20 percent. Every new full-time job (meeting certain minimum wage standards) earns businesses a $1,000 tax credit used to pay certain state business taxes.[2] Businesses may only claim these credits after the jobs are created. Pennsylvania is looking out for small employers, too:  25 percent of the tax credits available to be awarded each year must be awarded to businesses that employ 100 or fewer workers. [3]

To apply online, businesses can log in to the Electronic Single Application for Assistance.[4]

One requirement ensures that Pennsylvania businesses stay sharp: In addition to the job creation requirement, businesses applying for the credit must demonstrate “leadership in the application, development, or deployment of leading technologies in business operations.” This means that a business must either develop new product technology or demonstrate improved productivity due to innovative processes. [5]

The JCTC program is just one of many economic development weapons in Pennsylvania’s arsenal. Business owners can search for more funding, loans, tax credits and other incentives on the Pennsylvania Department of Community and Economic Development website here.

Learn more about leveraging tax credits and incentives with help from ADP.


The information provided in this blog post is for informational purposes only and not for the purpose of providing accounting, legal, or tax advice. The information and services ADP provides should not be deemed a substitute for the advice of any such professional.  Such information is by nature subject to revision and may not be the most current information available.









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