BACKGROUND:
In November, 2004, the City enacted enhanced Job Creation Tax Credit legislation. The program permits eligible businesses to claim a credit against its Business Privilege tax liability equal to the higher of 2% of annual wages paid for each new job or $1,000 per new job created.

ELIGIBILITY:
To qualify for the credit, a business must demonstrate the ability to create at least 25 new full-time jobs, or increase workforce by at least 20% within the required 5-year period. The business must also demonstrate financial stability, project viability and the intention to maintain operations within the City for a period of 5 years from the date the tax credit certificate is submitted to the Philadelphia Department of Revenue.

In order to qualify, a new job must be full-time and have an average hourly rate at least 150% of the federal minimum wage. The job must be created within the City of Philadelphia within 5 years of the start date, which is set by the Department of Revenue and after which the business may begin creating eligible jobs. The credit is available for a period of 5 years from the start date, and may be recaptured in the event that the business fails to create the required number of jobs or maintain existing operations.

PROCEDURE:
Businesses should submit a complete application to the Philadelphia Department of Revenue. If the application is approved, the Department will issue a commitment letter containing the number of new jobs to be credited and the maximum job credit the taxpayer may claim.

Additional information on the Job Creation Tax Credit can be obtained by contacting the Department of Revenue at:

City of Philadelphia
Department of Revenue
Technical Staff
1401 JFK Blvd. - 6th Fl.
Philadelphia, PA 19102
(215) 686-6433

Applications and instructions are also available on-line at:
http://www.phila.gov/revenue/pdfs/Jobs_Credit_App_2.pdf