Small business tax help website
 

Job Tax Credit for Small Business

A job tax credit for small business is available for selected small businesses creating new jobs in the market. A job tax credit for small business is available for any small business engaged in the selected business activities. A job tax credit for small business usually does not include retail businesses unless other job tax credit for small business requirements are all met. Each state has different policies on job tax credit for small business. Contact your state for requirements to qualify for job tax credit for small business and tax forms.

Businesses that usually qualify for a job tax credit for small business are:

  • manufacturing
  • warehousing and distribution
  • processing
  • telecommunications
  • tourism
  • research and development (R&D)
What is a job tax credit for small business?

A small business can claim a job tax credit for small business when it creates 15 or more new jobs. The job tax credit for small business is usually a set amount of dollars for a set number of years such as 5 years for each new job created.

How to qualify for a job tax credit for small business?

In addition to job creation, to qualify for a job tax credit for small business, a small business must meet other criteria set by the state such as:

  • provide an average wage that is higher than the average wage set by the state, and
  • make comparable health insurance available to new employees

Job tax credits for small businesses are allowed for each full-time employee job. Check with your state for requirements of a job tax credit for small business and tax forms.