Alan Krueger
Businesses have hired an estimated 5.6 million new workers who had been previously unemployed over the past five months, making them eligible for an estimated $10.4 billion in tax savings under the Hiring Incentives to Restore Employment (HIRE) Act.
The Treasury Department issued a report Aug. 2 containing state-by-state estimates of the number of eligible hires under the HIRE Act. The HIRE Act, enacted in March 2010, gives employers an incentive to hire workers who have been unemployed for 60 days or longer by granting them a payroll tax exemption for these new hires in 2010. Companies and nonprofits also get an additional $1,000 tax credit for every new worker retained on the payroll for at least a year.
While the language was initially vague on eligible employers, ASAE earlier this year worked to ensure that the tax credits were extended to a wide variety of nonprofit organizations, including associations, philanthropic organizations, universities, and other nonprofit groups.
“The HIRE Act is an example of a targeted, time-limited program that promotes private-sector job growth, which is essential for a strong recovery,” said Assistant Treasury Secretary Alan Krueger.
Sen. Charles Schumer (D-NY) and Rep. Paul Tonko (D-NY) said at a news conference in Albany this week that they plan to introduce bills to extend the HIRE Act for six months beyond its expiration date at the end of 2010. The Treasury report was released at a news conference at Albany Medical Center, a hospital with 7,000 employees that has hired 155 new employees eligible for the HIRE Act tax break.
“The HIRE Act tax cut has proven to be a timely, targeted and effective job creator, helping middle-class Americans find work,” Schumer said. “Employers have hired over 300,000 New Yorkers and over 5.6 million Americans who are eligible for this tax cut, and I will be pushing to extend it for an additional six months.”
