Bill > S1471

This bill proposes to create a new tax credit for businesses in Massachusetts that hire recent graduates, defined as Massachusetts residents who have earned an associate's or bachelor's degree from a Massachusetts institution within the last three years and were not independent contractors for the business during that time. The credit would be equal to 5% of the gross wages paid to such a graduate, up to a maximum of $600 per year, for each year the graduate is employed in "sustained employment," meaning for at least 185 days in a taxable year. This credit is intended to reduce a business's excise tax liability, but it cannot lower the tax below a minimum amount. If the credit exceeds the tax owed in a given year, the unused portion can be carried forward for up to five years to offset future tax liabilities, with the oldest credits being applied first. Importantly, a business can only receive this credit for a specific graduate for one calendar year, though they can apply for credits related to different graduates in the same or different years.