Section 8703-A - Employment incentive payments(a) A taxpayer who employs an eligible individual shall be entitled to employment incentive payments as provided by this article.(b) No employment incentive payment shall be provided for:(1) The employment of a person who displaces any other individual from employment except persons discharged for cause as certified by the Department of Labor and Industry.(2) The employment of a person closely related, as defined by clauses (1) through (8) of section 152(a) of the Internal Revenue Code of 1986 ( Public Law 99-514, 26 U.S.C. § 1 et seq.), to the taxpayer or, if the taxpayer is a corporation, to an individual who owns, directly or indirectly, more than 50% of the outstanding stock of the taxpayer.(3) Wages paid to an individual during the time period for which the employer received federally funded or State funded job training payments for that individual.(c) The employment incentive payment shall be calculated on an annual basis as provided in clauses (1) and (2): (1) The employment incentive payment shall be the sum of thirty per cent of the first nine thousand dollars ($9,000) of qualified first-year wages, twenty per cent of the first nine thousand dollars ($9,000) of qualified second-year wages and ten per cent of the first nine thousand dollars ($9,000) of qualified third-year wages.(2) A taxpayer eligible to receive a credit under clause (1) shall be eligible to receive an additional employment incentive payment as provided in this clause if: (i) the taxpayer provides or pays for day care services for the children of an eligible individual; or(ii) the taxpayer provides or pays for transportation services that enable an eligible individual to travel to and from work. The additional employment incentive payments under this clause shall be the expenses incurred by the taxpayer for services listed in subclauses (i) and (ii), but in no case shall the additional employment incentive payment for each eligible individual exceed eight hundred dollars ($800) during the first year of employment, six hundred dollars ($600) during the second year of employment or four hundred dollars ($400) during the third year of employment.
(d) The employment incentive payment shall be utilized as a credit against a qualified tax liability to which the taxpayer is subject. The employment incentive payment applicable to a pass-through entity shall be allocated in the same manner as income is allocated.(e)(1) Except in cases where an eligible individual voluntarily leaves the employment of the taxpayer, becomes disabled or is terminated for cause, no taxpayer shall be entitled to receive an employment incentive payment if the eligible individual is employed by the taxpayer for less than one year.(2) If the eligible individual leaves the employment of the taxpayer voluntarily, becomes disabled or is terminated for cause in less than one year, the employment incentive payment shall be reduced by the proportion of the year not worked.(f) The total employment incentive payment credit shall not exceed ninety per cent of the total taxes paid by the employer against which the employment incentive payments may be claimed as a credit.(g) Employment incentive payments unused as a tax credit in a taxable year may be carried over against a qualified tax liability in the ten immediately subsequent taxable years.(h) For the purposes of computing a tax liability against which the employment incentive payments may be applied, deductions from taxable income shall be reduced by the employment incentive payments.1971, March 4, P.L. 6, No. 2, § 1703-A, added 1999, Dec. 15, P.L. 926, No. 63, § 3, eff. 1/1/2000.