2001 Montana Legislature

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SENATE BILL NO. 273

INTRODUCED BY C. STAPLETON



A BILL FOR AN ACT ENTITLED: "AN ACT ESTABLISHING AN INCENTIVE PROGRAM TO EMPLOY RECENT MONTANA COLLEGE GRADUATES; ESTABLISHING THE QUALIFICATIONS FOR THE INCENTIVES; PROVIDING QUALIFIED MONTANA GRADUATES A $500 $1,000 PAYMENT AFTER 6 MONTHS OF QUALIFIED EMPLOYMENT IN THE STATE AND AN ADDITIONAL $1,000 FOR 24 UNINTERRUPTED MONTHS OF EMPLOYMENT WITH THE SAME EMPLOYER; LIMITING QUALIFIED GRADUATES TO ONE 6-MONTH AND ONE 24-MONTH INCENTIVE PAYMENT; PROVIDING $500 A $1,000 INDIVIDUAL AND CORPORATE INCOME TAX CREDITS CREDIT TO BUSINESS EMPLOYERS FOR EACH QUALIFIED GRADUATE EMPLOYED BY THEM FOR 6 MONTHS AND AN ADDITIONAL $1,000 IN TAX CREDITS FOR KEEPING THE SAME QUALIFIED GRADUATES GRADUATE EMPLOYED FOR 24 UNINTERRUPTED MONTHS; PROVIDING A CRIMINAL PENALTY FOR ILLEGALLY RECEIVING AN INCENTIVE PAYMENT; AND PROVIDING AN EFFECTIVE DATE AND, AN APPLICABILITY DATE, AND A TERMINATION DATE."



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:



     NEW SECTION.  Section 1.  Montana graduate in-state employment incentive program -- purpose. The purpose of [sections 1 through 5] is to provide an incentive for Montana businesses to hire and retain Montana college graduates and to provide an incentive for Montana college graduates to remain in the state after college, thus enhancing and vitalizing our workforce.



     NEW SECTION.  Section 2.  Definitions. As used in [sections 1 through 5], the following definitions apply:

     (1)  "Department" means department of labor and industry provided for in 2-15-1701.

     (2)  "Full-time employment" means normal employment of at least 35 hours a week and earning a minimum of $8 an hour.

     (3)  "Qualified employer" means an employer engaged in business for profit within the state.

     (4)  "Qualified graduate" means a person who:

     (A) received a first bachelor's degree from a college or university located in Montana AND within 3 years of AFTER the GRADUATION date WAS hired by a qualified MONTANA employer, with the. THE majority of the credits required for that THE bachelor's degree having MUST HAVE been obtained from a college or university located in Montana.

     (B) IF THE PERSON OWES FOR STUDENT EDUCATIONAL LOANS, DOES NOT HAVE LOANS IN DELINQUENCY AS DEFINED IN 20-26-1101.



     NEW SECTION.  Section 3.  Application for incentive payment to qualified graduates. (1) A qualified graduate is entitled to an incentive payment of $500 after completing 6 months of uninterrupted full-time employment in the state with a qualified employer and a further incentive payment of $1,000 after completing 24 months of uninterrupted FULL-TIME employment in the state with the same qualified employer. A qualified graduate is eligible for incentive payments only once.

     (2)  A qualified graduate shall apply for incentive payments on forms provided by the department. The application must require verification of the required term of employment by the applicant's employer.



     NEW SECTION.  Section 4.  Income or corporate tax credit for hiring qualified graduates. (1) A taxpayer WHO IS A QUALIFIED EMPLOYER is allowed a tax credit against the taxes imposed by 15-30-103 or 15-31-101 in an amount equal to:

     (a)  $500 for each qualified graduate who has completed, during the tax year, 6 months of uninterrupted full-time employment in the state with the taxpayer; and

     (b)  $1,000 for each qualified graduate who was the subject of a credit under subsection (1)(a) for the taxpayer and who has completed, during the tax year, 24 months of uninterrupted full-time employment in the state with the taxpayer.

     (2)  The credit allowed under subsection (1) may be used as a carryforward against taxes imposed by 15-30-103 or 15-31-101 for 7 succeeding tax years. The entire amount of the credit not used in the year earned must be carried first to the earliest tax year in which the credit may be applied and then to each succeeding tax year.



     NEW SECTION.  Section 5.  Obtaining incentive payments through deception or other fraudulent means -- criminal penalty. A person who, through deception or other fraudulent means, obtains incentive payments that the person is not entitled to under [sections 1 through 5] is guilty of a crime under 45-6-301, and a county attorney may initiate criminal proceedings against the person.



     NEW SECTION.  Section 6.  Montana graduate in-state employment incentive program tax credit. There is a credit against taxes otherwise due under this chapter allowable for the Montana graduate in-state employment incentive program. The credit must be computed and administered as provided in [section 4]. AN EMPLOYER MAY NOT CLAIM THE TAX CREDIT IF THE INDIVIDUAL WHO RECEIVES AN INCENTIVE PAYMENT UNDER [SECTION 3] IS AN OFFICER OR OWNER OF THE EMPLOYING ENTITY.



     NEW SECTION.  Section 7.  Montana graduate in-state employment incentive program tax credit. (1) There is a credit against taxes otherwise due under this chapter allowable for the Montana graduate in-state employment incentive program. The credit must be computed and administered as provided in [section 4]. AN EMPLOYER MAY NOT CLAIM THE TAX CREDIT IF THE INDIVIDUAL WHO RECEIVES AN INCENTIVE PAYMENT UNDER [SECTION 3] IS AN OFFICER OR OWNER OF THE EMPLOYING ENTITY.

     (2)  If a Montana graduate in-state employment incentive program tax credit is claimed by a small business corporation, as defined in 15-31-201, or a partnership, the credit must be attributed to shareholders or partners using the same proportion used to report the corporation's or partnership's income or loss for Montana income tax purposes.



     NEW SECTION.  Section 8.  Codification instruction. (1) [Sections 1 through 5] are intended to be codified as an integral part of Title 39, and the provisions of Title 39 apply to [sections 1 through 5].

     (2)  [Section 6] is intended to be codified as an integral part of Title 15, chapter 30, and the provisions of Title 15, chapter 30, apply to [section 6].

     (3)  [Section 7] is intended to be codified as an integral part of Title 15, chapter 31, and the provisions of Title 15, chapter 31, apply to [section 7].



     NEW SECTION.  Section 9.  Effective date. [This act] is effective July 1, 2001.



     NEW SECTION.  Section 10.  Applicability. [This act] applies to persons that graduate with a bachelor's degree from a college or university in the state after June 30, 2001.



     NEW SECTION.  SECTION 11.  TERMINATION. [THIS ACT] TERMINATES JUNE 30, 2005.

- END -




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