Bill Containing Tax Breaks and Other Hiring Incentives Headed to President’s Desk For Signature
Barran Liebman LLP
Oregon Law Firm,
The U.S. Senate passed President Obama’s so-called “jobs bill,” a package of economic incentives designed to spur hiring and job growth in the midst of the economic downturn. Because the House has already passed the bill, it heads to the White House for President Obama’s signature.
The bill provides additional funding for federal highway and mass transit construction, as well as tax deductions for certain kinds of equipment purchases. Most importantly to employers, however, is the bill’s payroll tax exemption. For the remainder of 2010, employers will not have to pay payroll taxes for new employees who, prior to their hiring, had been unemployed for at least 60 days. In addition, for each new employee who remains with the company for a full year, the employer may take a $1,000 tax credit.
Once the President signs the bill, debate will likely move to a second (and much larger) job-creation bill that was passed by the Senate last week that would extend unemployment benefits and the COBRA subsidy through the end of the year. The House is currently considering the second bill, but has not yet set a timetable for a vote. We will let you know immediately when there is additional information to report on the prospects of the second jobs bill.
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