Job Growth Incentive Tax Credit

The job growth incentive tax credit (JGTC) encourages the growth of high-paying Montana-based jobs. The credit applies to certain industries and offers a tax credit equal to 50% of employer-paid payroll taxes for qualifying new employees. Review below to help determine your eligibility and learn more about the tax credit, or click here to go directly to the application.

Verify That Your Business Qualifies

In order to qualify for the JGTC, you must answer yes to ALL of the following questions:

  • Has your business hired at least five new employees in Montana during the tax year?
    • Of these newly hired employees, did they work six months or more in 2022 and have a wage over $50,000 dollars per year?
    • Qualifying new employees for the credit must be hired in the tax year, employed for at least 6 months, be paid over $50,000, and receive the same benefits offered to other employees.
  • Were the qualifying employees hired towards a Montana-based project that will encourage, promote, and stimulate economic development?
    • Qualifying projects are in the construction, natural resources, mining, agriculture, forestry, manufacturing, transportation, utilities, or outdoor recreation sectors.
  • Did your business hire more qualifying new employees in 2022 than the level of FTE’s in 2021?
    • The first time the JGTC is claimed, your business must have net employee growth of at least five, or 10 for projects in counties with over 20,000 population.
    • An FTE is equal to 2,080 work hours, or one person working 40 hours per week, 52 weeks per year.

Net Employee Growth = (Qualifying new employees) - (2021 FTE level)

Example of Calculating Qualifying Net Employee Growth

Qualifying net employee growth compares this year’s qualifying new hires relative to 2021’s total employment, using FTE’s for total employment.
Suppose a business had 10 FTEs in 2021, and hired 12 qualifying new employees this year. Could this business qualify? No, because the net difference is 2
Suppose a business had 10 FTEs in 2021, and hired 12 qualifying new employees this year. Could this business qualify? No, because the net difference is 2.
Bar graph showing the net employee growth from years 2021 to 2022
Suppose another business had 6 FTEs in 2021, and hired 17 qualifying new employees this year. Could this business qualify? Yes, because their net difference is 11.

Do You Believe You Qualify?

  1. Create an account

    Fill out the step-by-step application here: https://ebiz.mt.gov/WSD/.

    You will be asked to provide information about the business applying for the credit, the 2021 FTE of the employer, the qualifying project, and each qualifying new employee hired.

  2. Submit an Application

    Applications for the 2022 tax year must be submitted between November 1, 2022 and January 31, 2023.

Please note that you cannot claim both the apprenticeship tax credit and the job growth tax credit in the same tax year, but please apply for the job growth tax credit so you can determine which credit most benefits your business.

If you have questions about the tax credit program or the application process, please email us at jobgrowthtaxcreditprogram@mt.gov

How much will the tax credit be?

The amount of tax credit that can be claimed is equal to the 50% of FICA taxes paid on the Montana source wages of qualifying new employees during the tax year.

To calculate:

  1.   Identify qualifying new employees
  2.   Sum the employer-paid FICA taxes on Montana source wages of these employees
  3.   Divide the sum by two

FAQs - Job Growth Incentive Tax Credit

  • In the 2021 session, the State of Montana established the job growth incentive tax credit to promote the growth of high paying jobs in Montana. Employers who hire enough new workers in high paying jobs (a job paying over $50,000 per year in 2021) may qualify for an annual credit against income taxes imposed under the Federal Insurance Contributions Act (FICA). You can read the legislation establishing the tax credit here, and administrative rules here.

  • The amount of the credit is equal to 50% of the taxes paid on Montana source wages of qualifying new employees under the Federal Insurance Contributions Act (FICA).

  • To apply, create an account and use the electronic application form established by the Montana Department of Labor and Industry found here: https://ebiz.mt.gov/WSD/. You will be asked to provide information about the employer applying for the credit, the 2021 FTE of the employer, the qualifying project, and each qualifying new employee hired.

  • From November 1 through January 31 each year, applications can be submitted for only the most recent tax year. For example, from 11/1/2023 – 1/31/2024, applications will be accepted for only the 2023 tax year. Create an account and submit an application at: https://ebiz.mt.gov/WSD/.

  • To qualify for the JGTC, a business must have qualifying net employee growth associated with a qualifying project. The amount of qualifying net employee growth needed depends on the location of the project and whether the business has claimed the tax credit in the past.

    • For a project in a county with population 20,000 or less, an employer claiming for the first time must have qualifying net employee growth of at least 5, and at least 7 for every year after the first.
    • For a project in a county with population above 20,000, an employer claiming for the first time must have qualifying net employee growth of at least 10, and at least 15 for every year after the first.
  • A qualifying project is a project in Montana that encourages, promotes, and stimulates economic development in the sectors of construction, natural resources, mining, agriculture, forestry, manufacturing, transportation, utilities, or outdoor recreation.

  • Qualifying net employee growth is calculated by subtracting your business’s number of 2021 full-time-equivalents (FTE) from the number of qualifying new employees hired in the tax year of the application.

  • A qualifying new employee is a new employee hired in the tax year of the application that:

    • has a yearly wage of at least $50,000 plus any benefits paid to other employees,
    • Worked for at least 6 months during the year for which the credit is granted,
    • Was not previously employed by the employer in the preceding 12 months or hired to replace an employee of a predecessor.
  • A Full-Time-Equivalent (FTE) is an estimate of how many full-time workers a business employs based on the number of hours a business’s employees work. One FTE is equal to 2,080 work hours, or one person working 40 hours per week, 52 weeks per year. To assist with the calculation of FTEs, DLI has included an FTE calculator within the application process.

  • Yes.

  • Once you’ve received your Job Growth Incentive Tax Credit Certificate, you need to provide this certificate along with Form JGI with your annual tax filings. You can find the form here.
  • Yes, every year the yearly wage that a qualifying employee must be paid will increase by the previous year’s June to June inflation factor as defined by 39-11-404(10)(e) MCA. For qualifying new employees claimed in tax year 2022 the yearly wage must be at least $50,000. The table below shows the each tax year’s minimum yearly wage for a qualifying employee:

    Tax Year Qualifying New Employee
    Minimum Yearly Wage
    2022 $50,000
    2023 $54,530
Back To Top