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.
In order to qualify for the JGTC, you must answer yes to ALL of the following questions:
Net Employee Growth = (Qualifying new employees) - (2021 FTE level)
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.
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
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:
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.
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:
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.
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 |
