Job Growth Incentive Tax Credit (JGTC)

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:

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 per year?
• Qualifying new employees for the credit must be hired in the tax year, employed for at least six months, be paid over $50,000, and receive the same benefits offered to other employees.

Were the qualifying employees hired toward 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 FTEs in 2021?

• The first time the JGTC is claimed, your business must have grown by at least five net employees, or ten net employees for projects in counties with populations of more than 20,000.

• 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)

Contact

For more information, go to the website at https://dli.mt.gov/jgtc.

Or email: JobGrowthTaxCreditProgram@mt.gov