Congressman Lowenthal Introduces Small Business Jobs Bill

December 7, 2015
Press Release
Congressman Alan Lowenthal has introduced new federal legislation that will extend tax incentives to small businesses nationwide who hire workers currently receiving unemployment benefits.

Under the "American Unemployed Worker Investment Act," or H.R. 4178, small businesses with 10-25 full-time employees would be able to qualify for an annual $4,000 per employee tax credit for up to two years under the Work Opportunity Tax Credit (WOTC). To qualify, the new employees must be kept on payroll for at least one year, working at least 35 hours per week. Small businesses must also show a net increase of at least 1 new employee per year in order to qualify for the credit.

"Despite the numerous challenges facing our nation, creating jobs for unemployed Americans remains a critical issue. This bill is a reasoned and responsible solution to create private sector incentives for hiring out-of-work Americans," Congressman Lowenthal said. "More than 90 percent of all businesses in the U.S. are businesses with less than 25 employees. They are the incubators of innovation and a vital component of our national economy. This tax credit is an investment in our small businesses that will help transition unemployed Americans back into the workforce while saving millions of tax payer dollars."

The American Unemployed Worker Investment Act is consistent with President Obama's proposed jobs bill, the "American Jobs Act", which seeks to provide employers who hire long-term unemployed workers a $4,000 tax credit.

This bill is officially endorsed by the California Small Business Association. Original cosponsors include Congresswoman Ann McLane Kuster and Congressman Tony Cárdenas.