This legislation for rural communities expands the Work Opportunity Tax Credit (WOTC) and gives companies, small and large, an incentive to locate and expand their business to rural areas and hire rural residents. Under this bill, an employer would be eligible to receive a tax credit, generally 40% of the first $6,000 in wages, for every job added in a rural area. The definition of “rural” would be determined by the Secretary of Agriculture.
Even when the U.S. economy was growing, many rural Americans were struggling in their local economy. As the American economy has slowed and national unemployment is almost 10 percent, this problem has only worsened. I introduced this economic stimulus bill in an effort to get more jobs into Tennessee’s First District and other rural areas across America. I believe this initiative will help our rural communities and I believe it could be a part of a larger effort to create jobs in our economy.