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HB 2196, the Youth Employment Incentive Tax Credit

Category : Money , Other Stuff

We are proud to join The Greater Philadelphia Chamber of Commerce is urging lawmakers to approve HB 2196, a Pennsylvania state tax credit for businesses that employ disadvantaged youth.

Rep. Josh Shapiro (D – Montgomery County) introduced this terrific bill that would encourage business to hire young adults from under privileged households.

Under this measure, if a business hires a young adult who comes from a household with income that does not exceed 235% of the federal poverty level, that business would be eligible for tax credits equal to 70% of the employment expenses incurred. Introduced by Rep. Josh Shapiro (D – Montgomery County), the bill sets aside $20 million for these tax credits.

Putting young people to work is important. We want our teens to have the valuable skills and life experiences earned from working, and its great to see Rep. Josh Shapiro and the state focus on how they can help.

This is not a hand out, but a working solution.

Please contact your state legislators and ask them to vote YES on HB 2196, the Youth Employment Incentive Tax Credit.

From the Chamber, Details of the Bill:

  • Employers must submit an application describing the position to their local Workforce Investment Board (WIB). The WIB will submit applications that meet threshold criteria to DCED for review. DCED will issue a commitment letter to employers that will include the maximum amount of tax credits the taxpayer may claim. Tax credits may be sold or transferred with approval of DCED.
  • Eligible youth are Pennsylvania residents between the ages of 14 and 21, whose median family income does not exceed 235% of the federal poverty level -consistent with TANF grants.
  • Qualified expenses include wages, fringe benefits, related payroll and training expenses, and other related expenses approved by the Department of Revenue (e.g. Transportation).