Today Representative Dan Maffei spoke to the Webster Chamber of Commerce about the HIRE Act, a bill designed to give businesses tax incentives for hiring new workers. The bill passed earlier this year and was signed into law by President Obama in March, but many local small businesses have not been aware of the potential benefits for them.
Representative Maffei said: "The HIRE Act is specifically designed to help small businesses and entrepreneurs do what they do best: create jobs. If a business hires someone who has been unemployed for at least the past 60 days, there is a guaranteed tax benefit. We need to spread the word about this legislation so all the businesses in the area, no matter how big or small, know that if they're ready to hire there is potential for some real savings."
What is in the HIRE Act?
Tax Incentives for Businesses to Hire Unemployed Workers
* Businesses that hire unemployed workers will receive a payroll tax holiday.
* Businesses that retain employees for at least 52 weeks during these difficult economic times will receive a $1,000 income tax credit.
* Businesses will receive an exemption from Social Security payroll taxes for every worker hired in 2010 who has been unemployed for at least 60 days.
Relief for Small Businesses
* Small businesses can write off double the amount for capital investments and purchases of new equipment. Instead of $125,000, they can write off $250,000. This provision was originally included in the Recovery Act, and this bill extends it.