The Employment Incentive Payment Credits (EIP) Program was established for purposes of providing a tax incentive for employers who hire individuals receiving public assistance. Under the program, employers earn direct state tax credits for each hire of a person on public assistance. The credit can be applied against a broad range of employer taxes and the unused credits can be carried forward a maximum of three years. The EIP Program originally had a sunset date of December 31, 1985, but it was extended until June 30, 1989, by Act 102 of 1985.

The proposed amendments to the EIP regulations would make the following changes:

1. The procedure for obtaining the EIP credit is revised. 2. Identifies additional individuals for whom an employer may not claim an EIP credit. 3. A definition section has been added and various other revisions have been made to clarify the EIP procedure and qualification for credits.