Legislation recently introduced by U.S. Rep. Tom Rooney (R-FL) would establish a tax credit for small businesses that hire new employees in an effort to promote growth and higher wages.
The bill, H.R. 2680, would establish an annual tax credit of 3.825 percent, half of employer payroll tax obligations, for small businesses that hire up to three new employees earning up to $100,000 in total wages. Rooney introduced the bill with bipartisan support from U.S. Rep. Charlie Crist (D-FL).
“This common sense bill rewards small business for creating jobs in our communities,” Rooney said. “Promoting local businesses and encouraging job growth is not a partisan issue. I look forward to working with Congressman Crist on this innovative approach to helping America’s communities thrive.”
The new tax credit would help address a lack of access to capital that has hamstrung small business growth. Nearly 50 percent of small business owners reported that they didn’t have access to bank lending that they needed in 2016, the Federal Reserve reports.
“The lingering impact of the Great Recession continues to make it difficult for many small businesses to obtain bank loans in order to grow,” Crist said. “Economic expansion starts on Main Street — not Wall Street. Our bill gives locally owned businesses a much-needed boost, from the barber shop in South St. Petersburg to the tech entrepreneur in Clearwater. These entrepreneurs should have an easier time hiring more people to serve more customers and expand their businesses.”