HB 92 is an emergency Administration bill that provides tax credits for businesses that hire unemployed workers. The credit has been increased from $3,000 per employee to $5,000 per employee and is only valid for an employee hired between the effective date of the bill and December 31, 2010.  A total of $20 million in credits would be provided. 
 
Each employer could claim a maximum of $250,000 in tax credits, equating to 50 employees hired per employer. A qualified employer must be operating a business in Maryland and filing State income tax returns, or be a nonprofit organization, and certified as eligible by DLLR.  A qualified employee hire must be a State resident, must be currently receiving unemployment insurance benefits or have exhausted their unemployment insurance benefits in the last 12 months, and cannot be employed full time.   
 
The job must be a full-time position without an expiration date and either a new job or a vacant job for at least 6 months.  The job must exist for a minimum of one year. A position can't be shifted from another location in the State unless it is a new job and also cannot be created by a change in ownership or through consolidation, merger, or restructuring of a business.  Additionally, employers cannot shift employment functions or displace an existing employee. If a qualified employee leaves the job, another person may be hired and the employer will receive a credit for that replacement employee, but the credit may not be granted for more than 12 months of employment for a qualified position. The credit can only be taken on tax year 2009, 2010, or 2011 returns and is refundable.

 Unemployment Facts & Figures

 

 > National unemployment is currently 9.7%, and Maryland unemployment is around 7.5%.

 

 > The current average duration of unemployment is 29 weeks, the longest since record keeping began in 1948.  Unemployment insurance benefits are provided for 26 weeks.   

 > The UI Trust Fund has seen a 92% increase in claims over the last two years.  More than 400,000 claims were filed in 2009.

 > In fiscal 2009, the State paid out $891 million in unemployment benefits, as compared to $478 million in fiscal 2008.  In addition, 93,000 people exhausted their benefits in 2009, up from 35,000 in 2008.

 

Background on UI Benefits and Non-Citizens

 > State law specifically addresses eligibility for non-citizens to collect UI benefits. In addition, under federal rules, a worker must demonstrate they are working legally in order to get UI benefits.

 > They must give a Social Security Number (SSN), or otherwise demonstrate their legal status for UI benefits.  If they have a SSN, DLLR goes directly to the Social Security Administration (SSA) to verify the number, name, and date of birth.  If there is a discrepancy, the worker has to go to SSA to straighten it out.

 

 > There is no other system that can be used, including E-Verify, to do a more comprehensive job than how it is done now by DLLR through direct contact with the Social Security Administration and the Department of Homeland Security.  E-Verify is available to other departments and private companies to access information for this purpose, but DLLR does not need E-Verify.