U.S. Reps. Tom Rooney (R-FL) and Charlie Crist (D-FL) are co-sponsoring legislation that would give businesses tax credits to hire new employees.
The Small Business Tax Relief and Jobs Act of 2017 (H.R. 2680) would allow businesses to receive an annual tax credit of 3.825 percent, which is equivalent to half of an employer’s payroll tax obligation, for up to three new employees and totaling $100,000 in wages.
“The lingering impact of the Great Recession continues to make it difficult for many small businesses to obtain bank loans in order to grow,” Crist said. “Economic expansion starts on Main Street – not Wall Street. These entrepreneurs should have an easier time hiring more people to serve more customers and expand their businesses.”
The bill’s sponsors said the legislation would foster growth and enable business to provide higher wages to employees.
According to the Federal Reserve, almost 50 percent of small businesses did not receive the bank lending they needed in 2016. This makes it more difficult to grow their businesses and hire new employees, said Rooney and Crist. This legislation is designed to remedy that.
“This commonsense bill rewards small business for creating jobs in our communities,” Rooney said. “Promoting local businesses and encouraging job growth is not a partisan issue.”