Manufacturing Tax Credit (MTC) Program

Overview

Program provides tax credits to taxpayers who increase their annual taxable payroll by $1,000,000 through the creation of new full-time jobs.

Uses

Tax credit awards shall be equal to 5% of the taxpayers increase in annual taxable payroll, if increased by at least $1,000,000 above a pre-determined base year amount.

Eligibility

Those eligible to apply are qualified taxpayers who increase their annual taxable payroll by $1,000,000 through the creation of new full-time jobs. Qualified taxpayers must be subject to the Personal Income Tax (excluding employer withholding), Corporate Net Income Tax, Capital Stock/Foreign Franchise Tax, Bank Shares Tax, Title Insurance Companies Shares Tax, Insurance Premiums Tax, Gross Receipts Tax, and Mutual Thrift Institutions Tax.

Funding

The commonwealth shall issue no more than $4,000,000 in tax credits per fiscal year.

How to Apply

Qualified taxpayers will apply through DCED’s electronic Single Application system. Applicants will also be required to complete the program addenda included as part of the Single Application. All applications will be reviewed on a first-come, first-served basis by date received.