With rising unemployment nationally, along with declining wage tax revenue locally, there will be an urgent shift in public policy focus toward job creation in the near future.

City Councilman At-Large W. Wilson Goode, Jr. already made his move. In January, he introduced the “New Philadelphia Jobs Tax Credit Ordinance”. The legislation, unanimously approved and signed into law in June, established a two-year employment stimulus program under which a credit against the City's business privilege taxes will be given to businesses that create new jobs within the City of Philadelphia for the next two years. The businesses will receive a $3000 credit for each new job created for tax years 2010 and 2011.

The Job Creation Tax Credit Program was established in May 2002. The program was intended to encourage businesses to create new jobs within the City of Philadelphia and was based on the Commonwealth of Pennsylvania’s Job Creation Tax Credit program. The Department of Revenue was designated to implement and to oversee the program.

Successful applicants must agree to create at least 25 new jobs or to increase the number of employees by at least 20% within five years of the designated start date and must

commit to maintaining operations in Philadelphia for five years. When a business demonstrates that the new jobs have been created, the Department of Revenue will issue a Job Creation Tax Credit Certificate reflecting the number of jobs created. The business may then claim a tax credit against the business’ total Business Privilege Tax (BPT) liability equal to $1,000 for each new job created or 2% of the amount of wages paid for each new job, whichever is higher. For 2010 and 2011, the business can claim a credit of $3,000 for each new job created or 2% of the amount of wages paid for each new job, whichever is higher.

Councilman Goode said, “This tax credit boost will help to create more jobs within Philadelphia while maintaining the program’s current financial cap at 1% of the previous year’s BPT revenue. As we continue to work toward economic recovery, business and job growth will require the right kind of stimulus. This effort will expand upon the jobs that will already be created under my existing program.”