101 CMR 28.04 - DETC General Requirements

(1) For tax years beginning on or after January 1, 2023, an employer may claim the DETC where:

(a) the employer hires a qualified employee with a disability after July 1, 2021, for a position in a competitive employment setting;

(b) the employer timely receives a copy of the qualified employee's DETC certification consistent with the requirements in 101 CMR 28.06(1);

(c) the qualified employee is employed for at least 12 consecutive months prior to and in the taxable year in which the credit is claimed. For example, if the qualified employee is employed on July 1, 2022, through June 30, 2023, the employer is entitled to claim the credit for wages paid in 2023 because the employee has been employed for 12 consecutive months both prior to and in the taxable year in which the credit is claimed;

(d) the qualified employee's primary place of employment and primary place of residence were in Massachusetts during the 12 consecutive months supporting eligibility for the DETC; and

(e) the employer meets the additional employer eligibility requirements set forth in 101 CMR 28.00.

(2) The DETC is a tax credit equal to $5,000 or 30% of the wages paid to the qualified employee with a disability in the first taxable year of employment, whichever is less.

(3) For each subsequent taxable year of employment, the DETC is $2,000 or 30% of the wages paid to the qualified employee with a disability, whichever is less.

(4) There is no limit to the number of years the DETC is available to an employer who is otherwise eligible for the credit under 101 CMR 28.00.

(5) An individual with a disability(ies) who seeks to be certified as a qualified employee with a disability may apply to MRC for DETC certification as set forth in 101 CMR 28.05. If certified, the qualified employee may present the DETC certification to prospective employers as part of an application for employment.

Notes

101 CMR 28.04

Adopted by Mass Register Issue 1473, eff. 7/8/2022.