(Federal) Job Creation Tax Credit Act


Photo of Senator Sheldon Whitehouse from His Senate Website

If you haven’t already heard, US Senator Sheldon Whitehouse (Democrat of Rhode Island) introduce the Job Creation Tax Credit Act in June.  The bill would expand on the HIRE Act of 2010, providing tax incentives for the hiring of unemployed individuals.
Quoting the Senator from his website:

For each qualified hire made in 2011, the business would receive a tax credit equal to 15% of the wages paid to the new employee. If the new employee remains employed, or if the business hires additional employees in 2012, it would be eligible for a 10% tax credit equal to those employees’ wages next year.

Furthermore,

The tax credits would be refundable, meaning that businesses would benefit from them even if they are not currently profitable. The higher credit in 2011 would encourage employers to hire new workers as soon as possible, and the additional credit in 2012 would encourage employee retention and additional workforce expansion.

A new hire qualifies in the same way one did under the 2010 HIRE Act — being unemployed for the 60 days prior to hire.
According to the congressional legislation tracking website, as of today (July 28, 2011) there has been no additional action on this bill since it was introduced and referred to committee on June 23rd.


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