Jobs Tax Credit Calculation Example
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Tax Year 1
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Tax Year 2
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Tax Year 3
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January
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5
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6
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9
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February
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5
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6
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9
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March
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5
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6
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9
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April
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5
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6
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9
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May
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5
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8
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9
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June
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5
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8
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9
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July
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5
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8
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9
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August
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6
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8
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9
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September
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6
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8
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9
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October
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6
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8
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9
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November
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6
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8
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10
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December
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6
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9
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10
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Totals
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65
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89
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110
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Mo. Average
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5.42
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7.42
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9.17
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In first tax year, this business started with 5 employees
in January and added 1 employee beginning in August.
For the first 7 months, the business had 5 employees
and for the final 5 months had 6 employees. This is
an average of 5.42 employees. The jobs credit is $500
X 5.42 employees totaling $2,710.
In the second tax year, the business began with 6
employees and added 2 in May and one in December for
an average of 7.42 employees. Since credit has been
taken on 5.42 employees, credit remains on 2 employees
for a total of $1,000 for the second year.
In the third year, the business starts with 9 employees
and adds 1 employee in November. The credit is now
figured on 9.17 minus 7.42 (2nd year credit taken)
which equals 1.75 employees X $500 for a total credit
of $875 for the third year.
 Return to New Business Facility Credits
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