New job creation tax credit could give small businesses leg up

On Monday, Senator Sheldon Whitehouse paid a visit to TEDCO, Inc., a Cranston manufacturing company, and announced a piece of new legislation. The proposed bill, called the Job Creation Tax Credit Act, is geared toward helping small businesses expand their workforce, while putting the unemployed back to work.

The act would expand upon the HIRE Act of 2010 that offered tax breaks to small businesses that hired new employees between February 2010 and the start of 2011. The HIRE Act granted employers up to $1,000 in tax credits for each new hire. The Job Creation Tax Credit Act would offer tax credits of 15 percent of wages paid in 2011 and 10 percent of wages paid in 2012 for qualified new hires in those years.

Like in the HIRE Act, new hires under the Job Creation Tax Credit Act must have been previously unemployed for at least 60 days. Because of the refunds, Whitehouse hopes that small businesses will want to take on new hires and in turn benefit even if they are not currently turning a profit.

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By:  Kim Kalunian
Source: Cranston Herald