Encourages companies to combat unemployment through pro-growth incentives
Washington, DC – During National Small Business Week, Congressman Jerry McNerney (CA-09) introduced H.R. 2313, the Small Business Relief and Job Creation Act, which incentivizes small businesses to combat unemployment by hiring workers who have been previously unemployed or out of the workforce.
Under Rep. McNerney’s bill, eligible businesses would receive tax credits for hiring unemployed workers, and, in an effort to alleviate the financial hardships that many communities across America are facing, additional credits would be available to small businesses located in areas with high unemployment.
“Small businesses are the backbone of our economy, and investing in these companies means investing in the future of American enterprise,” said Congressman McNerney. “There are far too many people in our community in need of and searching for work, and we must do more to address the problem of unemployment both in our region and across the country. That is what the Small Business Relief and Job Creation Act will do through tax credits that spur hiring and economic growth.”
Nationwide, the United States stands at a 4.5 percent unemployment rate as of March 2017. However, according to the United States Census Bureau, the unemployment rate for California’s 9th Congressional District is more than double that rate, currently at 10 percent.
The specific provisions of Small Business Relief and Job Creation Act include:
- A tax credit of 7.5 percent of wages earned by an employee in 2018, and five percent in 2019, applicable to the first $75,000 of an employee’s salary
- A tax credit of 15 percent in 2018, and 10 percent in 2019, as above, in counties with an unemployment rate higher than the national rate
Additionally, to be eligible, small businesses must accrue a revenue of $20 million or less or have no more than 100 full-time employees. New hires must also be full-time employees who work at least 30 hours per week, and have been certified as eligible for unemployment compensation during the previous year.
“With 31,000 small businesses in my district, and more than 28 million throughout the United States, we must commit to giving these businesses the tools they need to succeed,” stated Congressman McNerney. “Small businesses lead the nation in job creation, boosting our local and national economy, and serve as a vibrant part of the fabric of our communities.”
H.R. 2313 is cosponsored by Representatives Dwight Evans, Grace F. Napolitano, Yvette D. Clarke and Tim Ryan.
The Small Business Relief and Job Creation Act received support from a number of stakeholders, including:
Douglass Wilhoit, CEO, Greater Stockton Chamber of Commerce
“It appears that this legislation is a real attempt to attack from two directions. It will help small businesses prosper and at the same time to assist qualified workers in getting back into the workforce.”
Bob Gutierrez, President of the San Joaquin County Hispanic Chamber of Commerce
“Ensuring small business owners have the ability to thrive while driving workforce development and decreasing unemployment is part of the mission of the San Joaquin County Hispanic County Chamber of Commerce. The Small Business Relief and Job Creation Act accomplishes just that and we are proud to support Congressman McNerney’s efforts to help small businesses throughout America.”
John Arensmeyer, Founder & CEO of Small Business Majority
“Congressman McNerney’s re-introduction of the Small Business Relief and Job Creation Act is good news for small businesses. Legislation that incentivizes small employers to grow their businesses and create jobs will help strengthen our economy and move us further down the path to recovery. What’s more, this bill encourages small employers to hire workers who were previously unemployed, which will lower our unemployment rate, put more money in the pockets of consumers and bolster small employers’ bottom lines.”
Dennis Lee, Founder & Former CEO of Central Valley Asian American Chamber of Commerce
“The Small Business Relief Act is a critical bill for our region and small business owners. Northern California has some of the highest unemployment regions in the country and I appreciate Congressman McNerney for seeking to provide tax incentives to small business owners to help them to hire more people in our area.”
Dr. Derron Lee, owner of Midtown Optometry in Stockton
“The Small Business Relief and Job Creation Act is important for small business owners. We need all the tax savings possible and this bill will help small business owners create more jobs.”
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Rep. Jerry McNerney proudly serves the constituents of California’s 9th Congressional District that includes portions of San Joaquin, Contra Costa, and Sacramento Counties. For more information on Rep. McNerney’s work, follow him on Facebook and on Twitter @RepMcNerney