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Sec. 1. 36 MRSA §6753, sub-§14 is enacted to read:
14. Unemployed person. "Unemployed person" means a person who has not been employed for at least 6 months continuously in the 12 months preceding the date of hire and was receiving unemployment benefits pursuant to Title 26, chapter 13 for all or a portion of that period of time.
Sec. 2. 36 MRSA §6754-A is enacted to read:
§ 6754-A. Reimbursement for hiring unemployed persons
An employer that hires an unemployed person as a qualified employee is entitled to reimbursement of state income tax withheld for that employee during the first 6 months that the qualified employee is employed.
1. Generally. Reimbursement to employers must be administered in the same manner and according to the same timetable as under applicable provisions of section 6758. An employee for whom reimbursement is received under this section may not also count as a qualified employee under section 6754 during the period for which reimbursement is made under this section.
2. Funding. Funding for the Governor's Training Initiative Program under Title 26, section 2031 must be reduced by the amount of reimbursement paid under this section.
3. Recapture. The assessor may recapture a portion or all of the credit allowed under this section if the employer terminates the employment of the qualified employee prior to the one-year anniversary of the date of hire.
4. Repeal. This section is repealed December 31, 2014.
Sec. 3. Application. This Act applies to tax years beginning on or after January 1, 2012.’