Summary
Hiring Incentives to Restore Employment Act of 2010
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Extract
The HIRE Act of 2010.
In an effort to reduce persistent high unemployment and to encourage economic growth, on March 17, 2010, the Senate passed the Hiring Incentives to Restore Employment (HIRE) Act, (1) and President Barack Obama signed the legislation into law on March 18. The new legislation, which should be of great interest to businesses, seeks to achieve these goals by providing employers tax incentives to hire and retain new workers and to invest in new equipment.
The two most important provisions of the HIRE Act are a tax credit provision and a limited "payroll tax holiday" provision, both of which encourage companies to hire unemployed workers in 2010. The act also enhanced expense treatment for new equipment placed into service in 2010 by increasing the Sec. 179 expense deduction amount for 2010. Other features of the act include an extension of the refundable tax credit rules that apply to Build America Bonds to most qualified tax credit bonds and an increase in funding for highway and transit programs. [ILLUSTRATION OMITTED] To finance the hiring incentives in the HIRE Act, Congress passed several offsetting revenue increasing and compliance provisions, including a comprehensive set of measures to reduce offshore noncompliance. Some of the act's main foreign compliance and revenue raising provisions include new reporting rules for certain foreign bank accounts along with disclosure statements for "specified foreign financial assets." This article discusses the major parts of the HIRE Act (the payroll tax holiday and the $1,000 tax credit for retained workers), rev...See the full content of this document
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