Manufacturers, research and development (R&D) facilities, and commercial testing facilities located in rural counties or within a community empowerment zone (CEZ). See list of rural counties and CEZs.
Creating new, permanent, full-time, employment positions at qualifying facilities that increase employment by at least 15% over the following four calendar quarters from the period in which the employee was hired.
Example: The first qualifying position is hired on Feb. 2, 2020. In order to meet the requirements for the credit, the business must create new employment positions that increase total employment by 15% or more by March 31, 2021.
- $2,000 B&O tax credit for each qualified position created with annual wages/benefits of $40,000 or less.
- $4,000 B&O tax credit for each qualified position created with annual wages/benefits of more than $40,000.
Application and reporting:
You must mail or fax the Rural Area Application for New Employee B&O Tax Credit within 90 days of filling the first qualified position.
You must mail or fax the Rural Area Annual Report for New Employee B&O Tax Credit on the last day of the month immediately following the end of the four consecutive full calendar quarter period. A second annual report is due one year after the first report.
You may apply for future credits as long as each set of four consecutive quarters continues to have employment expansion that meets the 15% increase.
The credit may be claimed against any B&O tax due, and may be carried over until used. No refunds of the credit will be granted.
For questions about the paper application and report, please call Taxpayer Account Administration at 360-705-6214.