There continues to be an interest in Washington, D.C. to create a federal job creation credit or to expand existing job creation incentives, like WOTC.  Congressman Tom Rooney (R-Fla.) and John Boccieri (D- Ohio) have introduced the Helping Invigorate and Revive our Economy Act of 2009 (HR 3784), also known as the HIRE America Act. The HIRE America Act will expand the Work Opportunity Tax Credit (WOTC) to help small businesses and firms create new jobs and hire more employees. 

The bill is intended to do the following:

1.     Increase the income tax credit for employers for each hire that is eligible under the current WOTC criteria up to 50 percent. 

2.     Create new income tax credits for all other hires outside the current WOTC up to 30 percent. 

3.     Increase the maximum wage eligibility for Veterans under the current WOTC from $12,000 to $16,000.

4.     Increase tax credits for employers who offer childcare services or benefits to employees up to 35 percent. 

The Work Opportunity Tax Credit is set to expire on August 31, 2011.  The HIRE America Act would make these provisions permanent.

Angela Lockman