2010 Hiring Incentives to Restore Employment (HIRE) Act

President Obama signed his first major tax bill of 2010 on March 18. The new law provides incentives for hiring and retaining workers, along with a one-year extension of expensing and changes to Build America Bonds. The HIRE Act is partially offset by a package of new foreign account tax compliance rules and a further delay in the worldwide interest allocation rules. In addition, certain corporate estimated tax payments are also accelerated to help offset the cost of the tax incentives.

The HIRE Act creates an immediate incentive for businesses to hire unemployed individuals and an increased benefit the longer the new worker is on the payroll. Small businesses get an immediate tax benefit too, from the extension of and expensing extension.

Congress hopes that the HIRE Act’s enhanced tax credit bonds will help pump over $4.5 billion into local economies. For the complete special report, http://tax.cchgroup.com/legislation/Hire-Act-Signed.pdf.

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