B&O credit for new employees in manufacturing and research & development in rural counties

Available to:

Manufacturers, R&D laboratories, and commercial testing facilities located in rural counties or within a CEZ.

Qualifying activity:

Creating new employment positions/increase instate employment by 15%.

Credit amount:

• $2,000 credit/position with annual wages/benefits of $40,000 or less; or
• $4,000 credit/position with wages/benefits of more than $40,000 annually.

Reporting/documentation:

• Rural Area Application for B&O Tax Credit on New Employees must be filed within 90 days of filling the first qualified position.
• Annual Letter/Report due by the last day of the month immediately following the end of the four consecutive full calendar quarter period for which a credit is earned. Mailed by Department to applicants.
• Electronic filing not required.
• List of Rural Counties

For questions about the application and report, call Taxpayer Account Administration at 360-705-6214.