MD · Tax Credit

Maryland Workforce Training Tax Credits: What Employers Can Claim

Maryland's main employer hiring credit is the Job Creation Tax Credit: $3,000 for each qualified new full-time job ($5,000 in a revitalization area) when you create at least 60 jobs, or 25 or 10 in qualifying areas. The 2026 DECADE Act (Chapter 352) extends it to January 1, 2032. Maryland also has the Disability Employment Tax Credit. The federal Work Opportunity Tax Credit lapsed for people who start work after December 31, 2025. The state apprenticeship tax credit and More Jobs for Marylanders are over.

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State pre-filled: MD
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HOW IT WORKS

Four steps, in this order.

1
Tell Commerce you intend to seek certification before you hire the qualified positions
2
Create and fill the qualifying full-time jobs
3
Fill each position for 12 months, then apply for the credit certificate
4
Claim the certified credit on your Maryland tax return

2 VERIFIED PROGRAMS

Where the Maryland money comes from.

Run by Maryland Department of Commerce (Job Creation Tax Credit); Maryland Department of Labor (disability credit certification). Every figure is from an official page, linked on each card.

Job Creation Tax Credit (JCTC)

$3,000 per new job, $5,000 in revitalization areas

OPEN, THROUGH JANUARY 1, 2032

WHAT YOU GET

A credit for each qualified new position that stays filled.

HOW MUCH

$3,000 per qualified employee in the credit year, $5,000 in a revitalization area, up to $1.0 million per business per credit year. Commerce may certify up to $4.0 million a year in total. Carry forward up to five years. A separate small business veteran credit is $2,500 per qualified veteran, up to five.

WHO RECEIVES THE MONEY

The employer, as a nonrefundable credit against Maryland income tax or insurance premium tax.

WHO QUALIFIES

Establish or expand a facility in Maryland in an eligible industry
Within 24 months create at least 60 qualifying positions, or 25 in a priority funding area, or 10 in a qualifying lower-income or lower-employment county
Positions are full-time, indefinite, pay at least 120% of the state minimum wage, newly created, and filled 12 months
A net new job: shifted jobs, ownership changes and moves do not count

Before you start: Yes. You must tell Commerce you intend to seek certification before you hire the qualified employees.

Maryland Disability Employment Tax Credit (MDETC)

30% of wages for two years; wage base $15,000 per MD Labor

ONGOING

WHAT YOU GET

A credit on wages for each qualified new hire with a disability, plus a credit for work-related childcare or transportation costs you pay.

HOW MUCH

30% of up to the first $15,000 of wages in each of the first two years of employment, and up to $900 of childcare or transportation costs. MD Labor and the Comptroller show $15,000 with the old $9,000 in brackets; the DORS flyer still says $9,000. Confirm the wage base with MD Labor before you budget.

WHO RECEIVES THE MONEY

The employer, as a state income tax credit.

WHO QUALIFIES

The employee is certified by DORS, the VA or an authorised agency
Not for replacing laid-off or striking workers
Not available if you simultaneously receive federal or State employment training benefits for the hire

Before you start: Certification: return the employer part of the form to MD Labor within 28 days of hire.

AVOID THESE

What gets Maryland Tax Credit claims denied.

Hiring before telling Commerce you intend to seek JCTC certification.
SOURCE: MGALEG.MARYLAND.GOV
Counting jobs shifted from another Maryland site, filled under 12 months, or created by a merger.
SOURCE: MGALEG.MARYLAND.GOV
Paying below 120% of the state minimum wage on a JCTC position.
SOURCE: MGALEG.MARYLAND.GOV
Letting the headcount drop. A fall of more than 5% in qualified positions within 3 years triggers recapture.
SOURCE: MGALEG.MARYLAND.GOV
Claiming MDETC for a replacement hire or while receiving employment training benefits for the same person.
SOURCE: LABOR.MARYLAND.GOV

STRAIGHT ANSWERS

Maryland Tax Credit questions.

Is the Work Opportunity Tax Credit available for 2026 hires?

No. The IRS says it is available for wages of people who begin work on or before December 31, 2025. Maryland's own WOTC page still lists target groups only through December 31, 2025. Check the IRS page for any later law.

SOURCE: IRS.GOV

Is there still a Maryland apprenticeship tax credit?

No. It is not applicable to tax years 2025 and beyond. Use the Maryland Apprenticeship Incentive Program, a reimbursement, instead.

SOURCE: MGALEG.MARYLAND.GOV

Is the Job Creation Tax Credit still on the books?

Yes. It was set to end January 1, 2027. Chapter 352 of 2026 extends it five years to January 1, 2032.

SOURCE: MGALEG.MARYLAND.GOV

Can a small business use the Job Creation Tax Credit?

Only through the veteran route: a small business that hires qualified veterans can earn $2,500 per qualified veteran, up to five, if they stay a year. Confirm the current terms with Commerce.

SOURCE: MGALEG.MARYLAND.GOV

How we checked. Every fact on this page comes from a state agency, a local workforce board or federal regulation, read on September 30, 2026. Where a board publishes nothing, we say so instead of guessing. Programs and funding change often; confirm with the program before you commit. Written by Jason Meehl, founder of Reimbursa. Found an error? Email hello@reimbursa.com.

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