State Tax Credits for Job Creation & Capital Investments
by Kelley Rendziperis, on Mar 22, 2022 8:46:44 AM
As we enter another tax season, companies should analyze which credits exist for their job creation and capital investment activities. Site Selection Group compiled the following information for use in determining whether your company is eligible for a state investment or job tax credit. Some of the credits listed may be discretionary in nature, meaning they would need to be negotiated and secured prior to making the subject investment or creating the jobs, while others are statutory incentives that may be claimed on the company’s state income tax filing.
The following chart identifies opportunities for tax credits associated with job creation. We generally excluded credits for hiring certain types of employees (e.g., unemployed, prior felons, etc.)
Job Tax Credit
| State | Program Name |
| Alabama | Alabama Jobs Act – Jobs Credit Approved Basic Skills Education Credit |
| Alaska | Veteran Employment Credit |
| Arizona | Quality Jobs Tax Credit |
| Arkansas | Existing WorkforceTraining Credit Targeted BusinessPayroll Income Tax Credit PayrollRebate Advantage Arkansas JobCreation Income Tax Credit |
| California | California Competes Credit New Employment Credit |
| Colorado | Job Growth Incentive Tax Credit |
| Connecticut | Eligible Education Loan Payment Tax Credit Human Capital Investment Credit |
| Delaware | New Economy Jobs Credit New Business Facility Corporate Income Tax Credit |
| District of Columbia | Tax Credit to Qualified High Technology Companies for Wages |
| Florida | Rural Job Tax Credit Urban Job Tax Credit |
| Georgia | Job Tax Credit Quality Jobs Tax Credit Retraining Tax Credit |
| Hawaii | N/A |
| Idaho | Tax Reimbursement Incentive New Jobs Income Tax Credit |
| Illinois | Economic Development for a Growing Economy (EDGE) Credit High Impact Business Program |
| Indiana | Economic Development for a Growing Economy (EDGE) Credit |
| Iowa | High-Quality Jobs Program New Jobs Tax Credit Targeted Jobs Withholding Credit |
| Kansas | Promoting Employment Across Kansas (PEAK) Incentive High-Performance Incentive Training Credits |
| Kentucky | Employee Skills Training Investment Credit Kentucky Business Investment (KBI) Program Kentucky Jobs Retention Act (KJRA) Credit |
| Louisiana | Quality Jobs Program Rebate Enterprise Zone Credit |
| Maine | Pine Tree Development Zones |
| Maryland | Job Creation Tax Credit |
| Massachusetts | Economic Development Incentive Program Credit Life Sciences - Refundable Jobs Credit Veteran's Hire Tax Credit |
| Michigan | N/A |
| Minnesota | N/A |
| Mississippi | Job Creation Tax Credits National and Regional Headquarters - Income Tax Credit |
| Missouri | Missouri Works Program Business Facility Tax Credit Program |
| Montana | Job Growth Incentive Tax Credit |
| Nebraska | ImagiNE Nebraska Act |
| Nevada | Modified Business Tax Abatement |
| New Hampshire | Economic Revitalization Zone Tax Credit The Coos County Job Creation Tax Credit |
| New Jersey | Aspire Program Emerge Program New Jobs Investment Tax Credit |
| New Mexico | High-Wage Jobs Credit Job Mentorship Tax Credit Rural Areas Jobs Credits Veteran Employment Tax Credit Welfare-to-Work Credit |
| New York | Excelsior Jobs Program Tax Credit Employment Incentive Credit Employee Training Incentive Program Credit Empire State Jobs Retention Credit |
| North Carolina | N/A |
| North Dakota | Workforce Recruitment Credit |
| Ohio | Jobs Creation Tax Credit |
| Oklahoma | New Jobs Credit Oklahoma Quality Jobs Program Act |
| Oregon | N/A |
| Pennsylvania | Job Creation Tax Credit Keystone Special Development Zone |
| Rhode Island | Qualified Jobs Incentive Act Employment Tax Credit Jobs Training Credit Investment Tax Credit |
| South Carolina | Annual Job Tax Credit |
| South Dakota | N/A |
| Tennessee | Job Tax Credit |
| Texas | N/A |
| Utah | Economic Development Tax Increment Finance Tax Credit |
| Vermont | N/A |
| Virginia | Green Job Creation Credit Major Business Facility Job Credit Worker Training Tax Credit |
| Washington | B&O Credit for New Employees in Manufacturing and Research and Development in Rural Counties Veteran Hiring Credits Washington Customized Training Program Credit |
| West Virginia | High-Wage Growth Business Tax Credit Corporate Headquarters Credit Economic Opportunity Tax Credit |
| Wisconsin | Business Development Credit Enterprise Zone Tax Credits |
| Wyoming | N/A |
The following chart identifies opportunities for tax credits associated with capital investments. We generally excluded investments associated with venture capital/seed contributions, small business credits, and credits tied to investments made in certain geographic regions (e.g., brownfields, enterprise zones, etc.).
Investment Tax Credit
| State | Program Name |
| Alabama | Alabama Jobs Act – Investment Credit |
| Alaska | Salmon Product and Herring Development Tax Credit |
| Arizona | Qualified Facilities Tax Credit |
| Arkansas | ArkPlus Investment Income Tax Credit |
| California | California Competes Credit |
| Colorado | New Colorado Investment Credit |
| Old Colorado Investment Tax Credit | |
| Connecticut | Machinery and Equipment Expenditure Tax Credit |
| Urban and Industrial Site Reinvestment Tax Credit | |
| Fixed Capital Tax Credit | |
| Delaware | New Business Facility Corporate Income Tax Credit Alternative Investment Tax Credit |
| District of Columbia | N/A |
| Florida | Capital Investment Tax Credit |
| Georgia | Qualified Investment Tax Credit |
| Hawaii | Capital Goods Excise Tax Credit |
| Idaho | Investment Tax Credit |
| Illinois | Economic Development for a Growing Economy (EDGE) Credit |
| Replacement Tax Investment Credit | |
| High Impact Business Program | |
| Indiana | Hoosier Business Investment Tax Credit |
| Corporate Headquarters Relocation Tax Credit | |
| Iowa | High-Quality Jobs Program – Investment Tax Credit |
| Kansas | High-Performance Incentive Investment Tax Credit |
| Kentucky | Kentucky Reinvestment Act (KRA) Incentives |
| Kentucky Business Investment (KBI) Program | |
| Recycling or Composting Equipment Tax Credit | |
| Louisiana | Retention and Modernization Credit |
| Maine | Major Business Headquarters Expansion Credit |
| Maine Capital Investment Credit | |
| Maryland | Aerospace, Electronics, or Defense Contract Tax Credit |
| Biotechnology Investment Incentive Tax Credit | |
| Cybersecurity Investment Incentive Tax Credit | |
| Employer Security Clearance Costs Tax Credit | |
| Massachusetts | Economic Development Incentive Program Credit |
| Investment Tax Credit | |
| Michigan | N/A |
| Minnesota | N/A |
| Mississippi | Manufacturing Investment Tax Credit |
| Rural Economic Development Credit | |
| Missouri | Business Facility Tax Credit Program |
| Montana | Credit for Investment in Property to Process Reclaimed Material |
| Mineral and Coal Exploration Incentive Credit | |
| Nebraska | ImagiNE Nebraska Act |
| Nevada | N/A |
| New Hampshire | N/A |
| New Jersey | Aspire Program |
| Emerge Program | |
| New Jobs Investment Tax Credit | |
| New Mexico | Investment Tax Credit |
| New York | Investment Tax Credit |
| North Carolina | N/A |
| North Dakota | N/A |
| Ohio | N/A |
| Oklahoma | Investment Credit |
| Oregon | N/A |
| Pennsylvania | Qualified Manufacturing Innovation and Reinvestment Deduction |
| Rhode Island | Investment Tax Credit |
| South Carolina | Capital Investment Credit |
| South Dakota | N/A |
| Tennessee | Industrial Machinery Tax Credit |
| Texas | N/A |
| Utah | Economic Development Tax Increment Finance Tax Credit |
| Vermont | Machinery & Equipment Credit for REAP Zones |
| Virginia | International Trade Facility Credit |
| Washington | N/A |
| West Virginia | Five for Ten Program |
| Manufacturing Investment Credit | |
| Environmental Agricultural Equipment Tax Credit | |
| Wisconsin | Business Development Credit |
| Enterprise Zone Tax Credits | |
| Wyoming | N/A |
The above lists are not all-inclusive and are meant as a general representation of the job and investment tax credits that may be applicable to your business operations. Next month we will release our Annual Economic Incentive Market Report which will highlight the top discretionary economic incentive programs in each state.
If you have any questions about the credits listed above or are interested in pursuing discretionary incentives for future capital investment and job creation, please reach out to Kelley Rendziperis at krendziperis@siteselectiongroup.com.
