Idaho, California cities consider tax credits to jolt hiring
Idaho is rarely thought of as a center for commerce, but local lawmakers are trying to shake that reputation and improve employee recruiting and hiring with the passage of a new tax credit.
According to Bloomberg, the Idaho Chamber Alliance presented a bill to the Idaho House of Representatives' Revenue and Taxation Committee that will grant employers a 4 percent tax credit corresponding to a new hire's salary. Companies will only be eligible if the new employee is earning $12 per hour or more.
If passed, the bill will run through December 31, 2013. The Alliance believes the tax credit will have rollover effects, leading to increased hiring. Currently, Idaho possesses an 8.6 percent unemployment rate.
California, like Idaho, is weighing the option of a tax credit to increase hiring. The San Bernardino Sun reports that local lawmakers are considering a bill that would provide tax incentives to companies within the San Bernardino Valley Enterprise Zone that hire "disadvantaged" workers, including those who have been out of work for long periods of time and under-skilled workers.
"The businesses, on average, doubled the number of qualified employees on their payroll," Cal State-San Bernardino management professor Lee Hanson told the Sun during a conference call. "They were prepared to hire challenged workers as a result of the hiring tax credit."
According to Bloomberg, the Idaho Chamber Alliance presented a bill to the Idaho House of Representatives' Revenue and Taxation Committee that will grant employers a 4 percent tax credit corresponding to a new hire's salary. Companies will only be eligible if the new employee is earning $12 per hour or more.
If passed, the bill will run through December 31, 2013. The Alliance believes the tax credit will have rollover effects, leading to increased hiring. Currently, Idaho possesses an 8.6 percent unemployment rate.
California, like Idaho, is weighing the option of a tax credit to increase hiring. The San Bernardino Sun reports that local lawmakers are considering a bill that would provide tax incentives to companies within the San Bernardino Valley Enterprise Zone that hire "disadvantaged" workers, including those who have been out of work for long periods of time and under-skilled workers.
"The businesses, on average, doubled the number of qualified employees on their payroll," Cal State-San Bernardino management professor Lee Hanson told the Sun during a conference call. "They were prepared to hire challenged workers as a result of the hiring tax credit."
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