GO Item 2
Government Operations and
Josh Hamlin, Legislative
Expedited Bill 14-16, Taxation - New Jobs Tax Credit and
Enhanced New Jobs Tax Credit - Amount of Tax Credit - Term of Credit
Expedited Bill 14-16, Taxation-New Jobs Tax Credit and Enhanced New Jobs Tax Credit
- Amount of Credit - Term of Credit, sponsored by Lead Sponsor Council President at the request
of the County Executive, was introduced on April 19. A public hearing was held on May 10.
Bill 14-16 would change to term during which the Enhanced New Jobs Tax Credit may be
claimed from 12 taxable years to 24 taxable years.
Under State law, the County may provide by law for a property tax credit for certain
businesses that create at least 25 new, permanent, full-time jobs. The County may also provide for
an "enhanced" property tax credit for certain businesses that expend at least $150 million to obtain
at least 700,000 square feet ofnew or expanded business premises (through purchase, construction,
or lease), and employ at least 1,100 individuals full-time, including at least 500 in new, permanent
full-time jobs. Individuals in all ofthese positions must receive an employer-provided subsidized
health care benefit package, be paid at least 150% of the federal minimum wage,
and work in the
new or expanded premises, or in newly renovated premises neighboring the new or expanded
The County has implemented this authority, and provided for a "New Jobs Tax Credit and
Enhanced New Jobs Tax Credit" (see ©6-1O). These credits are applied against the business'
County property tax, in amounts and for terms set forth in the law. In general terms, the amount
of the New Jobs Tax Credit decreases over the first six taxable years that it is allowed, and is not
allowed after the sixth taxable year. The Enhanced New Jobs Tax Credit is 58.5% of the property
tax imposed on the
increase in assessment
of the new or expanded premises and any substantially
renovated real property adjoining or neighboring the new or expanded premises. Under current
law, the Enhanced credit may be claimed in each of the first 12 taxable years after the Director
certifies eligibility. The fiscal impact of these two credits since 1999 is shown in the Tax
Expenditure Report prepared by the Department of Finance (see ©11-12).
1150% of the federal minimum wage of $7.25 per hour is $10.88. Under County law, effective July 1,2017, the
County minimum wage will be $11.50 per hour.