Incentives for Hiring Unemployed Workers
The Hiring Incentives to Restore Employment Act included several tax provisions aimed at providing tax breaks for companies and organizations that hire previously unemployed workers. The bill excludes employers from paying the 6.2 percent in federal payroll taxes for the rest of 2010 on new employees they hire who have been previously unemployed for over two months. The bill also allows employers to receive a $1,000 tax credit for each of these new hired employees if they are still with the same employer after a year.
On August 2, 2010, the Treasury Department announced that 5.6 million employees hired between February and June were eligible for the tax credit.
Also included in the Hire Act were provisions for qualifying tax credit bonds.
Notes:
Maximum amount and amount spent reflect the lost revenue from the tax provisions over a 10-year period. Deficit impact reflects the total net cost of the provision in proportion to the total net cost of -$1.1 billion for the bill. Offsets totaled $16.7 billion, stemming largely from foreign account tax compliance and a delay in implementing worldwide interest expense allocation until 2020.