Washington, D.C. -— Rep. Bob Etheridge, the only North Carolina-member of the House Ways and Means Committee, joined the President at the White House on Thursday to witness the signing into law of the bi-partisan Hiring Incentives to Restore Employment (HIRE) Act.
The legislation, signed into law at a ceremony at the White House, will support more than one million new jobs, encourage private sector hiring, and help rebuild our crumbling infrastructure.
“My number one priority is putting North Carolinians back to work,” Etheridge said. “The HIRE Act will support more than one million new jobs this year, and encourage more businesses to take that next step to come off the sidelines and add employees.”
The centerpiece of the HIRE Act is a hiring tax credit, similar to that proposed in Etheridge’s HIRING Act, H.R. 4437. The bill will encourage business investment by putting labor on sale for a limited time, helping small businesses expand. Under the legislation, employers would not have to pay the 6.2 percent Social Security tax through December for new hires who had been out of work at least two months. That comes to about $2,300 for a worker making $50,000 a year if the employee is hired on April 1.
The HIRE Act also includes another Etheridge proposal to support local school construction. Qualified School Construction bonds were created in the American Recovery and Reinvestment Act, and built on a proposal by Congressman Etheridge championed for many years. The provision in the HIRE Act would allow the state or local government to choose to receive a direct payment from the Federal government equal to the value of that credit. This modification will help North Carolina’s schools access nearly $500 million in school construction bonds to address our student’s needs and support more than 15,000 jobs in North Carolina.
“We are truly excited about the 2010 QSCB authority for our public schools in North Carolina. We have significant need for school construction and need jobs as well,” said Ben Matthews, Director of School Support for the NC Department Public Instruction. “This new funding capability will give us a real shot in the arm on both fronts. We are also excited about the leadership provided by Congressman Etheridge to get the interest subsidy in the Jobs Bill. This significant move should open the banking market for us to sell these desperately needed bonds.”