“Creating jobs for Minnesota workers is my number one priority, and today we are moving forward with concrete actions to make it easier for employers to hire new workers,” said Klobuchar. “This legislation will provide tax incentives to encourage businesses to hire, tax cuts to help small businesses invest and expand, and measures to keep workers employed on projects to improve our nation’s roads, bridges, and public transportation infrastructure. While we still have a lot of work to do to get our economy back on track, this bill is an important step in the right direction.”
Klobuchar recently conducted a Small Business Jobs tour around Minnesota to discuss opportunities for job-creation with Minnesota employers and workers, including proposals specified in that are included in the HIRE Act. During this tour, Klobuchar repeatedly heard from Minnesota small business owners that allowing broader depreciation deductions would increase their ability to invest in the future growth of their businesses.
Following passage by the Senate today, the HIRE Act will be sent to the White House for the President’s signature. The legislation, which is fully paid for, includes:
- Jobs Payroll Tax Exemption: Provides businesses with an exemption from Social Security payroll taxes they owe for every worker hired in 2010 who has been unemployed for at least 60 days.
- Equipment Write-offs: Allows small businesses to deduct up to $250,000 of the cost of qualifying property in the year it is purchased, rather than waiting to recover their costs through depreciation deductions over a number of years.
- Highway Trust Fund Extension: Provide an extension of the nation’s surface transportation programs through December 31, 2010.
- Expansion of Build America Bonds: Allow issuers of existing Tax Credit Bonds to elect to treat bonds issued after the date of enactment as Build America Bonds.