What is it?
A two-year Maryland State tax credit available to employers for wages paid and
childcare expenses incurred by employers for Maryland residents who are recipients of
benefits through the Temporary Assistance to Needy Families (TANF). The credit is:
Year 1: 30% of 1st $6,000 wages = $1,800
plus up to $600 Childcare or Transportation
Year 2: 20% of 1st $6,000 wages = $1,200
plus up to $500 Childcare
- Individuals who have been residents of Maryland for the last 6 months.
- Maryland residents who have received Temporary Assistance to
Needy Families (TANF) benefits for a minimum of 3 months of the 18 month
immediately prior to employment.
- Temporary, seasonal, part-time, and full-time employees qualify for this
credit if they work for 12 months.
Long Term EOC Credit
- If an EOC eligible applicant has been a recipient of
Temporary Assistance to Needy Families (TANF) for any 18 months during the last 48 months and is employed by a
business entity for a full year, the amount of the credit is
40% of up to the first $10,000 of wages paid to the employee.
Providers - What you should tell employers
The Employer May:
- Claim the tax credit for an unlimited number of employees.
- Claim the tax credit along with the Federal Work Opportunity Tax Credit
(WOTC) and Federal Empowerment Zone credits if the employee is qualified.
The Employer May Not:
- Claim the credit if the MDETC is also claimed.
- Claim the credit if an EOC employee is hired to replace a laid-off or
on strike employee.
- Claim the credit for employment that lasts less than 12 months unless
the EOC employee is terminated from the job for cause, or is unable to
continue employment due to disability or death.
- Claim the credit for employee if the employer simultaneously receives
federal or state employment training benefits.
- Claim the credit until certification is received.
- After the job offer is made, all employer information must be completed on the Voucher.
- The Voucher, completed by the applicant and employer, must be sent to
DLLR with a postmark on or before the 28th day of employment.
- Employers retain the certification document for their tax records.
The Certifying Agency
- DLLR will certify the job seeker as eligible for the tax credit.
- Upon receipt of the Voucher and Applicant Characteristics from, DLLR
will determine eligibility.
- If eligibility is approved, DLLR will send the Employer Certification
form to the employer to retain for tax purpose.
State Bill 402, Article 88A, Social Services Administration, Section 56 of the
Annotated Code of Maryland.
Where to go for more information:
Department of Labor, Licensing and Regulation (DLLR)
Tax Credit Program Administrator
1100 N. Eutaw Street, Room 201
Baltimore, MD 21201