An Act Establishing A Tax Credit For Small Businesses That Create New Jobs.
Impact
If enacted, HB 05035 would amend existing state tax statutes to incorporate provisions for the new tax credit. This change is anticipated to foster a supportive environment for small businesses by providing them with financial relief in the form of tax credits, which could offset operational costs associated with hiring and training new employees. As a result, the bill is expected to contribute positively to the state's economy by increasing employment rates and potentially attracting more small enterprises seeking to benefit from the available tax incentives.
Summary
House Bill 05035 aims to establish a tax credit specifically aimed at encouraging small businesses to create new jobs. The bill proposes that the first fifty small businesses, defined as having fewer than fifty employees, may qualify for this tax incentive if they agree to create at least ten new full-time positions before June 30, 2014. The intent of the legislation is to boost employment opportunities within the state, particularly targeting small business growth as a means to enhance the local economy.
Contention
While the overarching goal of HB 05035 is to enhance job creation, there might be points of contention regarding its implementation. Critics may argue about the effectiveness of tax credits in genuinely stimulating job growth, questioning whether such measures are sufficient to address underlying economic issues for small enterprises. There may also be concerns about the fairness of the allocation process for the tax credits, as limiting it to the first fifty businesses could lead to competition among small business owners, which might not equally represent all communities across the state.