I’ll be cosponsoring this one

Majority Leader’s Plan Will Give Tax Credits To Businesses That Hire Unemployed South Carolinians

Columbia, SC – April 14, 2009 – South Carolina Senate Majority Leader Harvey Peeler (R – Cherokee) introduced legislation today to help fight South Carolina’s skyrocketing unemployment rate. Peeler’s “Jumpstart Plan” provides tax credits for businesses that hire unemployed workers and grows our economy by promoting the private sector, not growing government.

Under Peeler’s plan any employer who hires an unemployed South Carolinian will receive a $100 per month tax credit for each employee hired beginning July 1, 2009. The tax credit is available for 24 months, a maximum of $2,400 per employee over two years.

Senator Peeler said, “We aren’t going to grow our economy if we keep growing government on the backs of our state’s businesses and working families. We have to relieve the burden on business owners so that they can afford to hire new employees and jumpstart our economy.”

Peeler also called for renewed leadership during this tough economic crisis. “All we hear about are the problems plaguing our state. We hear about our second in the nation unemployment rate. We hear about our inability to fund schools and prisons. Very seldom do we hear about solutions. It’s time to move past the problems and find the solutions that will grow our economy and put families back to work.”

“I don’t have all the solutions, but I do know that our problems won’t be solved if we just sit on our hands. It’s time to get to work and give the private sector the tools they need to create jobs for our state,” Peeler continued.

Details of the Jumpstart Plan:

• Any employer who hires an unemployed South Carolinian will receive a $100 per month tax credit per employee beginning July 1, 2009.

• The tax credit is available for 24 months – maximum of $2,400 per employee in tax credit over a 2-year time.

• Defines an unemployed South Carolinian as:

– Someone who gets a job between July 1, 2009 and June 30, 2010

– Has been receiving unemployment benefits in SC for at least 4 weeks

– Remains in this position with the employer for at least 4 weeks – working a minimum of 35 hours per week

– Has no return to work date or promise of future employment

– Provides a notarized affidavit that the individual is a US citizen or has a green card

– Was unemployed immediately prior to being employed

• The employer becomes eligible for the tax credit when the employee has completed four consecutive weeks of work.  A workweek consists of a minimum of 35 hours.

• The amount of tax credit cannot exceed the amount of taxes the employer pays in a year, but any amount in excess may be carried over to the succeeding year.

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