SB 720 - For all tax years beginning on or after January 1, 2024, this act authorizes a taxpayer to claim a tax credit for wages paid by the taxpayer during the tax year to an individual who is in a targeted group, as such term is defined for the federal work opportunity tax credit, and who is employed in the state. The amount of the tax credit shall be the lesser of one hundred percent of the federal work opportunity tax credit claimed for the tax year by the taxpayer or the taxpayer's state income tax liability for the tax year. A nonprofit organization with no state income tax liability may retain withholding tax for such employees in the amount of the tax credit such organization would have be authorized to claim. Tax credits authorized by the act shall not be refundable or carried forward, and shall not be transferred, sold, or assigned.
This act shall sunset on December 31, 2029, unless reauthorized by the General Assembly.
This act is substantially similar to HB 1345 (2023) and to a provision in HCS/SS/SCS/SB 92 (2023), as amended.
JOSH NORBERG