Sales and Use Tax - Tax Credits - Workforce Development & Adult Learning

Effective July 1, 2021, qualified job training organizations may claim a sales tax vendor collection credit in an amount equal to 100% of the gross amount of sales and use taxes that they pay to the Comptroller of Maryland. This collection credit is authorized through Maryland Code Ann., Tax-General, §11-105 “Credit -- Collection and payment expense.”

The Department of Labor certifies eligible entities. Qualified job training organizations may apply for up to $100,000 in collection credits per calendar year. To be eligible for the collection credit, organizations must file a timely sales and use tax return.

If claiming this credit, an organization cannot claim another vendor credit.

A qualified job training organization is an organization that:

1. Is located in Maryland;
2. Is exempt from taxation under § 501(C)(3) of the Internal Revenue Code;
3. Conducts retail sales of donated items;
4. Provides job training and employment services to individuals with workplace disadvantages or disabilities; and
5. Uses a majority of its revenue for job training and job placement programs:
1. That assist individuals with growth in employment hours for individuals with low income, workplace disadvantages, disabilities, or barriers to employment; OR
2. For veterans.

Application for the Qualified Job Training Organization Collection Credit