(a) In this section, “federal work opportunity credit” means the work opportunity tax credit allowed under § 51 of the Internal Revenue Code.

(b) An employer may claim a credit against the State income tax for wages paid or incurred by the employer during the taxable year to an individual with barriers to employment who is employed in the State in an amount equal to the lesser of:

(1) 50% of the federal work opportunity credit properly claimed for the taxable year by an employer on the employer’s federal income tax return with respect to those wages, excluding any amount carried back or forward from another taxable year in accordance with § 39 of the Internal Revenue Code; or

(2) except in the case of an employer that is an organization exempt from taxation under § 501(c) of the Internal Revenue Code, the State income tax imposed for that taxable year.

(c) An employer that is an organization exempt from taxation under § 501(c) of the Internal Revenue Code may apply the credit under this section as a credit for the payment to the Comptroller of taxes that the organization:

(1) is required to withhold from the wages of employees under § 10-908 of this title; and

(2) is required to pay to the Comptroller under § 10-906(a) of this title.

(d) The unused amount of the credit under this section may not be carried over to any other taxable year.

(e) On or before December 31, 2028, the Department of Legislative Services shall prepare a tax credit evaluation in accordance with Title 1, Subtitle 3 of this article on the tax credit authorized under this section and report to the General Assembly, in accordance with § 2-1257 of the State Government Article, on the tax credit evaluation.