Bigger tax credits for job creators in Philly
A bill — sponsored by Councilman Wilson Goode Jr. — that would boost the city’s Job Creation Tax Credit Program by raising the amount of the credit from $3,000 to $5,000 for each new job created during the tax years 2012 and 2013 passed out of a City Council committee yesterday.
“We still believe that the Job Creation Tax Credit Program established in 2002 encourages businesses to expand employment within the City of Philadelphia,” Tilahun Afessa of the Department of Revenue testified.
The program is meant to encourage businesses to hire more people in the city by offering a credit to offset companies’ business taxes for each new job created in Philadelphia. All sizes and types of businesses within city limits are eligible.
Sixty-six firms have participated in the program through 2010, pledging to create 4,581 jobs. 1,032 of those have been certified as created, and $1,636,297 in tax certificates have been issued.
Despite the seemingly high price tag, the relative cost to the city is not steep.
“The annual amount of credit available under this program is limited to one percent of the prior year Business Privilege Tax collection,” Afessa said. “So far, the total credits that have been awarded each year have been far less than the limit.”