Temporary Authorized Tax Credit for Emergency Assistance
Tax Credits for Companies Who Hire New Arrivals
Recently, the state passed legislation in the supplemental budget to assist with the efforts of connecting new arrivals with employment opportunities in the form of a tax credit that businesses can utilize to fill positions. A total of $10 million has been (set) to operate the program, which businesses can tap into to assist with their workforce needs
The tax credit, formally known as the Temporary Authorized Training Tax Credit for Emergency Assistance is a component of the Healey-Driscoll Administration’s ongoing strategy to help break down barriers to employment for individuals in emergency assistance shelters and connect them with training and jobs.
In order to qualify for the tax credit an eligible business corporation, partnership, LLC or other legal entity MUST: be engaged in doing business in the Commonwealth; hire a qualified authorized job seeker on or after April 30th, 2024; and provide authorized training to the jobseeker.
A qualified jobseeker is an individual who receives benefits through Emergency Assist Shelter programs, they must be a resident of MA, legally authorized to work in the United States, and provide a copy of the following: An NFL-9, a length of stay approval extension, or a length of stay denial extension. Furthermore, the employer must ensure the job seeker, lives in an emergency assistance shelter, participates in authorized training, and works at least 20 hours per week.
A qualified ‘Authorized Training’ for the tax credit is a training program approved by the Massachusetts Department of Career Services and is offered by an employer to train qualified trainees. These programs could include, English for Speakers of Other Languages, Training Leading to a Certification, credential, or license, training-on-the-job. I complete list can be found here.
Also, employers must enroll the qualified jobseeker(s) within ten (10) business days of hire in an authorized training program, retain the qualified jobseeker(s) as an employee for a period of at least ninety (90) consecutive days in a taxable year; and provide post-placement support services and evidence of hire and retention.
The tax credit, it is not to exceed $150K per employer, to which $2,500 is provided to the employer for each qualified jobseeker that receives the training from the entity. The tax credit applies to taxable years starting January 1, 2024, and will expire by January 1, 2026, or earlier if the shelter capacity limit is lifted.
Overall, this program serves a dual purpose for the Commonwealth, an initiative that assists new arrivals with jobs as well as businesses with addressing their workforce needs.
More Information: https://www.mass.gov/technical-information-release/tir-24-7-temporary-authorized-training-tax-credit-for-emergency-assistance
If you would like to learn more about this Training Tax Credit program, please reach out to Mike Kane, Economic Development & Public Policy Associate at the Worcester Regional Chamber of Commerce. mkane@worcesterchamber.org