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Maryland State Tax Credit: Long-Term Employment of Ex-Felons Tax Credit
Maryland businesses that hire and employ an ex-felon for at least one year may be entitled to a credit.  The company must also obtain certification from the Department of Labor, Licensing and Regulation that the individual is a qualified ex-felon.

The credit can be claimed for two years, for the following amounts:

•  Year 1: 30% of the first $6,000 in wages
•  Year 2: 20% of the first $6,000 in wages

If the credit is more than the state tax liability, the unused portion may be carried forward for the next five tax years.

http://business.marylandtaxes.com/taxinfo/taxcredit/lteoef/default.asp

Federal Tax Credit: Work Opportunity Tax Credit
This program is pending reauthorization, but potentially eligible employers should contact the Maryland Department of Labor, Licensing, and Regulation to get more information and apply.

An employer who hires an ex-felon may be eligible for the Work Opportunity Tax Credit (WOTC).  This federal tax credit provides an incentive for employers to hire, train, and retain job seekers who often experience barriers to employment. The credit is worth up to $2,400 per qualified worker based on the following criteria:

•  Up to 25% of the first $6,000 in wages if the individual works a minimum of 120 hours but less than 400 hours.
•  Up to 40% of the first $6,000 in wages if the individual works 400 hours or more.

There is no limit on the number of workers an employer can claim.

MARYLAND DEPT OF LABOR, LICENSING & REGULATION
TAX CREDIT PROGRAM ADMINISTRATOR
1100 NORTH EUTAW STREET, SUITE 201
BALTIMORE, MD 21201
410-767-2080
www.dllr.state.md.us/employment/wotc.htm


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