The HIRE America Act increases the income tax credit for employers for each hire that is eligible under the current WOTC criteria up to 50 percent. The bill also creates a new income tax credit for all other hires outside the current WOTC up to 30 percent. Importantly the bill also increases the maximum wage eligibility for Veterans under the current WOTC from $12,000 to $16,000. Finally, the bill increases tax credits for employers who offer childcare services or benefits to employees up to 35 percent.
Currently, the Work Opportunity Tax Credit is set to expire on August 31, 2011. The HIRE America Act would make these provisions permanent.
It’s time we started created incentives for small business owners to create new jobs. This bill is a good kick start to get Americans back working again.
For additional information on the current Work Opportunity Tax Credit please click here.