07.01.14 |
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Pennsylvania Encourages Growth Through Job Creation Credit

The Pennsylvania Job Creation Tax Credit (JCTC) is an incentive designed to help induce job creation, and/or retention, and capital investment within the Commonwealth.

PennsylvaniaEligibility for the JCTC is predicated on an employer creating a minimum of twenty-five (25) net new full time employment positions, or increasing existing full time headcount by 20%, within three (3) years of the applicable start date. And, eligibility further necessitates maintaining operations in Pennsylvania for a period of five (5) years. Moreover, these employment positions must pay an hourly wage that is at least 150% of the prevailing federal minimum wage rate.

Prior to the commencement of hiring activities, a company is required to file an online application with the Pennsylvania Department of Community & Economic Development (DCED).

Subsequently, and following DCED’s review of the application, companies will enter into a formal written commitment which serves to memorialize the appropriate job creation, and/or retention, thresholds. A company’s failure to achieve the employment thresholds may result in DCED’s imposing recapture, or analogous, penalties.

The JCTC carries a value equal to $1,000 per net new full-time equivalent (FTE); and, this value augments to $2,500 per FTE if that individual was previously unemployed. At its discretion, the DCED may allow multiple-year credit awards to be claimed in the first year of eligibility. The maximum amount of credit in any year will be specified in the commitment letter provided by DCED to the company after application is approved.

 


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