Congressman Lowenthal Introduces Small Business Jobs Bill

WASHINGTON, D.C. – Congressman Alan Lowenthal today introduced the "American Unemployed Worker Investment Act," which extends tax incentives to small businesses who hire workers currently receiving unemployment benefits.

If enacted, small businesses with 10-25 full-time employees would be able to qualify for a $4,000 per employee tax credit for up to two years under the Work Opportunity Tax Credit (WOTC). To qualify, the employees must be kept on payroll for at least one year, working at least 35 hours per week. Businesses must also show a net increase of at least 1 new employee per year in order to qualify for the credit.

"Congress adjourned without extending unemployment benefits to the millions of Americans who will lose them next year and that must be one of our top priorities when we return in January. We must do everything we can to get Americans back to work and that is why I have introduced a practical solution that will create private sector incentives for hiring out-of-work Americans. The American Unemployed Worker Investment Act is such a solution," Congressman Lowenthal said. "This new tax credit is an investment in our small businesses and an investment in millions of unemployed Americans. The more Congress is able to focus on empowering small businesses to hire, the more we will able to transition Americans off unemployment benefits, while creating thousands of jobs and saving millions of tax payer dollars."

The American Unemployed Worker Investment Act is consistent with President Barack Obama's yet-to-be-passed signature jobs bill, the "American Jobs Act," which calls for a $4,000 tax break for employers who hire unemployed workers. Congressman Lowenthal's bill is also similar to California's New Jobs Credit, which is responsible for creating almost 35,000 new California jobs.

The Congressman's jobs bill is officially endorsed by the U.S. Hispanic Chamber of Commerce, National Black Chamber of Commerce, and California Small Business Association.

Javier Palomarez, President & CEO of the United States Hispanic Chamber of Commerce (USHCC) said, "By providing tax relief to small businesses growing their organizations, Congressman Lowenthal's American Unemployed Worker Investment Act will encourage entrepreneurs to open their doors to individuals searching for work. This bill provides the right incentives to bring the unemployed back into the labor force and adds fuel to American's economic engine – its small business community. It is a commonsense bill that we at the USHCC urge Congress to pass expeditiously into law."

"The National Black Chamber of Commerce is happy to support this bill.  It is pro-business and will certainly have a positive impact on employment," Harry C. Alford, President & CEO of the National Black Chamber of Commerce, said.

"The small business community has been America's Job Creators for centuries and this legislation will provide additional incentives for re-establishing our role as job creators.  We thank Congressman Lowenthal for his on-going efforts to help small biz!" Betty Jo Toccoli, President of the California Small Business Association, said.

Congressman Alan Lowenthal represents the cities of Long Beach, Lakewood, Signal Hill, Avalon, Los Alamitos, Rossmoor, Cypress, Westminster, Garden Grove, Anaheim, Buena Park, Midway City, and Stanton in California's 47th Congressional District. He can be followed on Facebook, Twitter, or his website.