PETITION OF:

Section 67D of Chapter 62C of the General Laws, as appearing in the 2004 Official Edition and as most recently amended by Section 78 of Chapter 141 of the Acts of 2003, is hereby deleted and replaced with the following new section:-

Section 67D. (a) When used in this section, the following words shall have the following meaning:

"Application year", the calendar year for which a business submits the information required for a determination as to a jobs incentive payment.

"Business", a corporation, sole proprietorship, partnership, limited liability company or any other form of business organization subject to taxation in the Commonwealth under chapters 62 or 63 of the General Laws.

"Eligible Jobs", a number determined by first multiplying each of the local jobs created by a business during a single calendar year by the job qualifier for that job, and then totaling the number for all of the local jobs created.

"Full time employee", a person who is employed for consideration for at least 35 hours per week and whose salary is subject to withholding as provided in chapter 62B.

"Job qualifier fraction", in the case of either a full-time employee or a part-time employee of a business, the figure that determines the extent to which that employee is employed in the commonwealth during a single calendar year. The job qualifier fraction for each employer shall be determined by multiplying the following percentages together: (i) the percentage of time that an employee worked while employed by the company expressed as average hours worked per week out of 35 hours, not to exceed 100 per cent; (ii) that employee's time attributable to work in the commonwealth, as a portion of that employee's total work for the company; and (iii) the portion of the year the employee worked for the company.

"Jobs incentive payment", an employment incentive payment for businesses as provided for in this section.

"Local jobs created", the total number of jobs created in Massachusetts by a business during a single calendar year, including jobs performed by persons that are transferred within the company to work at an in-state location from a location based outside the state. Said number of jobs shall be determined by the Department of Revenue using the number of full-time employees reported on the New Hire Report and the taxes withheld by an employer pursuant to Chapter 62B of the General Laws.

"Part-time employee", a person who is employed for consideration for less than 35 hours a week and whose salary is subject to withholding as provided in chapter 62B.

"Payment year” the calendar year immediately following the application year in which the business is determined to be eligible for a jobs incentive payment.

"Weighted, average employment", for a calendar year, the total number of jobs maintained by a business in which the employees performed employment services at at least 1 in-state location. The number is to be determined by first multiplying each of the individual jobs maintained by the company for that year by the job qualifier fraction for that job and then totaling the number for all of these jobs.

(b) A business that creates a qualified job in the commonwealth during a single calendar year shall be entitled to a job incentive payment if its weighted average employment for such year reflects a net increase of at least 1 qualified job over the company's weighted average employment for the prior calendar year. The jobs incentive payment shall be equal to 50 percent of the amount paid by the business as salary attributable to the eligible job or jobs created by the business in such year to the extent that the salary was subject to Massachusetts withholding pursuant to chapter 62B for such year, multiplied by the applicable income tax rate for such salary. For the purposes of this provision, an eligible job shall be deemed created in the commonwealth on the first day for which Massachusetts withholding is required in connection with the compensation paid to the employee.

(c) The jobs incentive payment shall be paid to a business in full in the calendar year immediately following the application year. If in the first or second year following the payment year, the company's weighted average employment falls below its weighted average for the application year, the company shall be required to pay back the job incentive payment to the Commonwealth in a manner determined by the department of revenue through regulations.

(d) A business that seeks a jobs incentive payment shall complete a form prescribed by the commissioner in consultation with the secretary of economic development. This form shall reference the necessary information concerning the eligible jobs created by the company in the Commonwealth during the application year and also the company's weighted average employment for such year and the prior calendar year. Upon completion of the form and verification by the department of revenue of the accuracy of the information, the commissioner shall issue a check to the business.

(e) Nothing in this section shall preclude a business that has previously received a job incentive payment from applying for an additional job incentive payment in subsequent years so long as the business successfully meets the eligibility requirements.

(f) The commissioner shall issue payments, as authorized in subsection (b), without further appropriation. The commissioner may issue rules and regulations as necessary or helpful to implement this section, including rules and regulations to ensure compliance with this section, provided however that the incentive payment shall be automatic so long as the business meets the eligibility criteria and completes the form.