Two bills introduced yesterday would amend the Internal Revenue Code to provide employer tax credits for hiring. Rep. Bob Etheridge’s (D-NC) bill, the Hiring Incentives to Reinvest and Incentivize New Growth (HIRING) Act of 2010 (H.R. 4437), is designed to promote employment in general. According to a summary of the bill, the HIRING Act would provide a refundable tax credit to any business that expands its payroll by at least 3 percent in 2010 or by at least 5 percent in 2011. Additionally, the bill would provide a credit of 15 percent of additions to payroll in 2010 and 10 percent in 2011. The credit would be based on payroll and businesses would be rewarded for hiring new employees, increasing employee hours, or restoring employee pay. If enacted, the provisions of this bill would apply to taxable years beginning after December 31, 2009. This bill has been referred to the House Committee on Ways and Means.

The same day, Rep. Deborah Halvorson (D-Ill.) introduced the Veterans Employment Today (VET) Act of 2010 (H.R. 4443), a bill that would increase the work opportunity tax credit (WOTC) for hiring veterans. Specifically, this legislation would increase the credit for hiring disabled veterans by raising to $15,000 from $12,000 the amount of “qualified wages” considered for a 40% tax credit. Currently, employers may claim up to a $4,800 tax credit (40% of the $12,000 in qualified wages) for each disabled veteran hired. Additionally, employers that hire unemployed veterans would be able to earn a credit against $7,500 of qualifying wages, up from the current $6,000 limit. Presently, employers may receive a tax credit of up to $2,400 for each unemployed veteran hired (40% of $6,000). This bill has been referred to the House Committee on Ways and Means.

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