United States

HIRE Act Offers New Tax Breaks

Second Quarter 2010

MANUFACTURING INSIGHTS  | 

On March 17, the Senate passed H.R. 2847, the Hiring Incentives to Restore Employment (HIRE) Act, by a vote of 68 to 29. The House approved the bill on March 4 by a vote of 217 to 201

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. Other provisions include:

  • Enhanced expense treatment for new equipment placed into service in 2010
  • Extended eligibility for tax credit bond issuers
  • Increased funding to highway and transit programs
  • New anti-offshore tax abuse measures
  • Delayed the implementation of worldwide allocation of interest