Job creation tax credit to be extended to five years

City Council approved Thursday to extend a job creation tax credit for businesses that hire and pay new employees at least $12 an hour.

The Living Wage Job Creation Tax Credit Bill, sponsored by Councilman Wilson Goode Jr. and unanimously approved by Council, extends a $5,000 tax break from one year to five years.

For every new full-time job created, in which the employee is paid at least 150 percent of the federal minimum wage or $12 an hour (whichever is higher), businesses would receive a $5,000 credit each year for five years. The extension could provide businesses up to $25,000 tax break per employee during a five year period.

The job creation tax credit program has been around since 2002 as a way to encourage businesses to stay and expand in Philadelphia. The credits are available to companies of any size or location within the city.

In addition, Council also passed another Goode–sponsored bill that requires contractors to include "equity ownership," information in their plans with the city.

"These bills offer new opportunity for diversity of ownership, higher wages and more jobs in Philadelphia," Goode said in a news release.

In other Council news, Councilwoman Blondell Reynolds Brown introduced an e-cigarette tax bill, which we reported on today. The bill was referred to the finance committee for a hearing.

Here is full story on tax credit extension.

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