Cranston, RI – After hearing from small business owners about how we can get our economy moving, U.S. Senator Sheldon Whitehouse today announced new legislation aimed at helping businesses hire more workers. Whitehouse’s Job Creation Tax Credit Act would offer tax breaks to help businesses expand their workforce.
“I’ve heard from small business owners all over the state who want to hire more workers, but who just aren’t sure they can afford it,” said Whitehouse. “This legislation would provide a tax incentive for small businesses to hire and put unemployed Rhode Islanders back to work.”
Expanding on the HIRE Act of 2010, the Job Creation Tax Credit Act would offer a new set of tax incentives for hiring in 2011 and 2012. If passed, the bill would provide businesses refundable tax credits of 15% of wages paid in 2011 and 10% of wages paid in 2012 for qualified new hires – those who have been unemployed for at least 60 days. The refundable nature of the credit means that struggling businesses can benefit from it even if they aren’t currently making profits.
Whitehouse announced the legislation today while touring TEDCO, Inc., a manufacturing business in Cranston which had been forced to downsize during the recession but is hoping to expand once again.
“As a contract manufacturer, TEDCO was forced to lay-off almost half of our skilled workforce when the recession was cutting deeply and reducing production,” said Dona Vincent, President and CFO of TEDCO. “This year has brought a very definite shift in perception by those setting policies, government and our customers, that returning manufacturing to America will provide the best development opportunities. In order for TEDCO to take advantage of this promising demand, we will need to expand our workforce and this legislation would provide the return on investment for the training that new hires will need to grow the company.”
Whitehouse was joined on the tour by representatives from the U.S. Small Business Administration’s (SBA) Rhode Island District Office and Navigant Credit Union of Smithfield. TEDCO recently received a loan from Navigant which was backed by the SBA.
Earlier this year Whitehouse unveiled his “Making It in Rhode Island” plan to support manufacturing jobs. The Job Creation Tax Credit Act will complement that broader plan.
Photo Caption: Senator Whitehouse hears from Dona Vincent and Barbara Gallonio of TEDCO.
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