Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.
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On Thursday, President Obama signed into law the Hiring Incentives to Restore Employment (HIRE) Act (H.R. 2847), the scaled-down jobs bill that provides employers with various tax breaks for hiring and retaining previously unemployed workers. The Senate approved this measure on Wednesday by an overwhelming 68-29 margin. In addition to exempting employers from paying 2010 Social Security taxes on wages up to $106,800 on each new employee who has been out of work for at least 60 days, the HIRE Act provides employers with a $1,000 income tax credit for every new employee retained for at least a year, and allows small businesses to deduct up to $250,000 for certain capital expenditures in the year purchased.
For more information on this new law, see Littler's ASAP: HIRE Act Signed Into Law — What it Means to Employers by GJ Stillson MacDonnell.