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H.R. 3807 Another Idea to Expand WOTC

I recently reported on Congressman Tom Rooney’s (R-FL) bill to expand the federal WOTC program to include all new hires, now Congressman Phil Roe (R-TN) is working on another bill to expand WOTC specifically for rural areas.  From the press release:

WASHINGTON, DC – Today, Congressman Dr. Phil Roe (TN-1) introduced the Economic Stimulus for Rural Communities Act (H.R. 3807) in an effort to stimulate the economy and create quality jobs in rural America. In East Tennessee and across the nation, rural areas are often times hit harder during an economic downturn and they often lag in a recovery. Congressman Roe’s legislation would amend the tax code to make rural employers eligible for a tax credit when they hire a rural worker.

“Even when the U.S. economy was growing, many rural Americans were struggling in their local economy,” said Roe. “As the American economy has slowed and national unemployment is almost 10 percent, this problem has only worsened. I will be introducing this economic stimulus bill in an effort to get more jobs into Tennessee’s First District and other rural areas across America.”

A recent article in the New York Times states that, “tax credits for companies that create new jobs is gaining support among economists” due to the highest unemployment numbers seen in this generation.

Roe’s economic stimulus bill for rural communities expands the Work Opportunity Tax Credit (WOTC) and gives companies, small and large, an incentive to locate and expand their business to rural areas and hire rural residents. Under this bill, an employer would be eligible to receive a tax credit, generally 40% of the first $6,000 in wages, for every job added in a rural area. The definition of “rural” would be determined by the Secretary of Agriculture.

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