Senate Votes to Advance HIRE Act

On Monday, the Senate voted 61-30 to limit debate on the Hiring Incentives to Restore Employment (HIRE) Act, the $15 billion jobs bill the House of Representatives approved on March 4. The HIRE Act was introduced as an amendment (S. Amt. 3310) to H.R. 2847, the more expansive jobs bill the House had already passed in December. The Senate initially cleared this scaled-down jobs bill on February 24, but because the House made minor revisions to the bill, the Senate once again needs to vote on the final jobs package.

This legislation, among other things, includes an employment creation section proposed by Senators Chuck Schumer (D-NY) and Orrin Hatch (R-UT). These provisions exempt any employer that hires a worker who has been without full-time work for at least 60 days from paying the employer’s share of Social Security taxes on that worker for 2010, up to a maximum value of $6,621, or 6.2 percent of wages paid in 2010 up to the FICA wage cap of $106,800. Therefore, the longer the previously unemployed worker is kept on the employer’s payroll, the greater the tax benefit. In addition, the Act provides a $1,000 income tax credit for every new employee retained for 52 weeks.

The bill would also extend a tax break included in the American Recovery and Reinvestment Act (“ARRA” or “Stimulus Bill”) that permits small businesses to deduct up to $250,000 of the cost of qualifying capital investments in the year purchased. In addition, the bill contains a one-year reauthorization of highway funding and other public transportation programs.

The Senate is expected to vote on this bill Tuesday or Wednesday.