The Senate on Wednesday passed the Hiring Incentives to Restore Employment Act (HR 2847). The bill passed the House on March 4, and now goes to President Barack Obama for his signature.
The bill contains several tax items, the biggest of which is a payroll tax credit for employers who hire workers who have been unemployed for at least 60 days and who are not replacement hires. For qualifying new employees hired after Feb. 3, 2010, and before Jan. 1, 2011, the employer can claim a credit equal to the employer’s share of Social Security taxes on wages paid in 2010. The bill also provides a credit of $1,000 for employers who retain such employees for at least 52 weeks.
Senator Chris Dodd (D-CT) issued the following statement today after the Senate passed the Hiring Incentives to Restore Employment (HIRE) Act. “Getting Americans back to work in stable, good-paying jobs is our highest priority,” said Dodd. “The HIRE Act is the first in a series of bills that will create jobs for American workers and get our economy back on the right track. This bill will ensure transportation projects can continue to move forward, and it creates incentives for businesses to hire more workers.”
The HIRE Act will also allow small businesses to write off more of their expenditures; extend transportation programs to rebuild the nation’s infrastructure; and expand the successful Build America Bonds program, so state and local governments can more easily finance infrastructure projects.
Why February 3rd? I hired an unemployed salesman on January 1st (started on the 4th) and I am a small business that could use the tax break. Why February 3rd? Why not make it effective January 1, 2010.
Comment by Jay Brewster — March 23rd, 2010 @ 10:39 pm