Bill
S 2076
The bill creates a refundable tax credit of up to 30% for eligible recruitment and retention expenses, with a $50M cap and a 24-month retention requirement.
Note on inconsistencies
- The bill heading supplied (about notice of initial determination for unemployment benefits) does not match the bill text. The actual text of S.2076 amends Massachusetts General Laws Chapter 62, §6 to create a new tax credit for employer recruitment and retention expenses. This summary follows the bill text.
Purpose
- To encourage Massachusetts employers to invest in recruiting and retaining workers by creating a refundable/allowable tax credit (added as paragraph (aa) to M.G.L. c.62, §6) that offsets a portion of certain employer expenditures on employee recruitment and retention.
Key provisions
- Credit amount: Employers may claim a credit equal to up to 30% of eligible recruitment and retention expenses.
- Eligible expenses: Expenditures made on behalf of, or reimbursements to, an eligible employee for education or skills training, transportation, housing, tools, or equipment.
- Aggregate cap: The total statewide amount of credits authorized is capped at $50,000,000.
- Per-employer/employee limit: No single employer may claim the credit for expenses related to more than three employees. (The bill does not specify whether this limit is per year or lifetime.)
- Employment commitment: An employer claiming the credit must certify that the employee has been, or will be, continuously employed in the same position for at least 24 months. If the employee is not employed for the 24-month period, the employer must forfeit the credit and reimburse the Commonwealth for the credit amount attributable to that employee.
- Sunset: The provision expires five years after its adoption unless extended, modified, or terminated earlier.
Who is affected
- Employers operating in Massachusetts who incur qualifying recruitment and retention expenses (especially those investing in training, transportation, housing supports, tools, or equipment for employees).
- Employees who receive the supported benefits (training, housing assistance, etc.), subject to the 24-month retention requirement.
- Commonwealth tax revenues and administration: the $50 million cap and potential reimbursements affect state fiscal exposure and tax administration.
Procedural status and timeline
- Filed: January 7, 2025 (Senate Docket No. 57)
- Introduced in Senate: June 12, 2025; read twice and referred to the Committee on Finance
- Current status (as supplied): COMMITTED TO RULES (June 13, 2025)
- A hearing was scheduled for October 28, 2025 (per the supplied actions)
- The bill would take effect on enactment and remain in force for five years unless extended.
Considerations and questions for implementation
- Administrative details are not defined in the text: how “eligible employer” and “eligible employee” are defined, documentation and verification requirements, timing of credit claims, interaction with other tax credits, and whether the credit is refundable or only reduces tax liability.
- The per-employer limit (maximum 3 employees) and the $50M statewide cap concentrate benefits and may limit impact on large-scale hiring efforts.
- The 24-month make-good requirement creates repayment exposure if employees leave early, which may affect employer willingness to claim credits.
Watch points
- Committee fiscal notes and proposed implementing regulations will clarify eligibility, timing, and enforcement.
- Legislative amendments could change the per-employer limit, the cap, or the retention requirement before final passage.
Compiled from official sources — confirm details with the bill’s official record.
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