Landrieu Supports Senate Passage of Jobs Bill

Press Release

U.S. Senator Mary Landrieu, D-La., today voted in favor of a bill aimed at strengthening the economy by creating jobs and giving relief to small business owners in Louisiana and across the country. The Hiring Incentives to Restore Employment (HIRE) Act passed the Senate by a vote of 70-28.

Sen. Landrieu said:

"From Baton Rouge to Bossier and Lake Charles to Monroe, the number one issue keeping Louisianians up at night is the economy. People are scared that every day they show up to work, could be their last, and those who have already lost their job are worried about supporting their family. This jobs bill is proof that we have heard this message loud and clear. The bill cuts taxes for small business owners and invests in rebuilding infrastructure. It is a measure that will create jobs in Louisiana and continue to strengthen the state's economy.

"It is an encouraging sign that thirteen Republican senators took the American people's call for bipartisanship seriously. Unfortunately, there are still too many of my colleagues who are more interested in scoring cheap political points than they are in passing common-sense, bipartisan legislation to help get people back to work and get our economy moving again."

The HIRE Act cuts taxes for small business entrepreneurs, allowing them to make the investments they need to grow their businesses and hire more workers. Under this legislation, small businesses will be able to write off up to $250,000 of certain capital expenditures in 2010, rather than depreciating those costs over time. That means that this bill will free up capital and allow businesses to invest in growth opportunities now, when their access to normal capital markets has been severely constricted by the economic crisis.

Additionally, the HIRE Act has implemented and experimental new tax credit that rewards the innovative businesses that are aggressively hiring new employees. Businesses are granted an exemption from the Social Security payroll taxes they owe for every worker hired in 2010 who has been unemployed for at least 60 days. The longer that a business has a new qualified worker on its payroll, the greater the tax benefit. In fact, any business that hires and keeps a new worker on the payroll for 52 weeks under this program will be eligible for a $1000 tax credit. These innovative market-based programs are intended to give businesses a real incentive to hire people now.

The HIRE Act extends the popular Build America Bonds program, which gives state and local governments the financing tools they need to move forward with road improvements, water and sewage upkeep, and other critical public works projects. These bonds allow state and local governments to cost-effectively finance infrastructure projects, thereby creating jobs, and providing the crucial infrastructure Louisiana businesses need. The Build America Bonds were initially created by the American Recovery and Reinvestment Act of 2009 and the state has already used the program to inject nearly $500 million into the state's infrastructure. For example:

*The State of Louisiana issued $224 million in Build America Bonds for transportation projects and natural gas utility improvements -- helping to complete much-needed road improvement projects and energy delivery systems across the state.

*Tangipahoa Parish issued approximately $99 million of Build America Bonds to finance Louisiana hospital and nursing home improvements in the North Oaks Health System.

*The City of New Orleans sold $40 million of Build America Bonds to finance street improvement projects.

*The City of Lafayette issued approximately $57.9 million in Build America Bonds for public project and recreational improvements.

The HIRE Act will strengthen our transportation infrastructure by continuing the provisions of the Safe, Accountable, Flexible, Efficient Transportation Equity Act (SAFETEA-LU) until December 31, 2010. This allows states to continue their long-term transportation projects upon which American commerce relies.

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