Governor signs bill to expand jobs program More employers gain tax breaks for hiring


Gov. Parris N. Glendening signed legislation yesterday that will expand a program that gives employers tax breaks for creating jobs under a statewide pilot program.

Under the legislation, county governments and Baltimore can each designate a single area where employers who add at least 25 jobs receive annual tax credits worth $1,500 per job for two years. The maximum for any business would be $1 million a year.

Del. John R. Leopold of Anne Arundel County, who introduced the legislation, said it is aimed at adding jobs near Baltimore-Washington International Airport. "The greatest engine of economic growth lies outside the Beltway in the BWI area," the Republican lawmaker said.

The legislation, House Bill 13, represents the second change in two years to the Job Creation Tax Credit, a five-year pilot program enacted in 1996.

The credit, which expires in 2001, initially applied to companies that created more than 60 jobs in targeted industries -- including manufacturing, mining, biotechnology and computer programming.

Last year, the General Assembly extended it to companies that created 25 jobs in more categories, including many service industries, in state enterprise zones or inside the Baltimore and Washington beltways.

House Bill 13 makes almost all jobs eligible. But only areas that have sewer service would qualify -- a designation that Leopold said makes it consistent with the governor's "Smart Growth" initiative.

Pub Date: 5/13/98

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