Senate Passes Jobs Bill

On Wednesday, the Senate voted 70-28 in favor of the Hiring Incentives to Restore Employment (HIRE) Act, the $15 billion jobs bill introduced by Sen. Majority Leader Harry Reid (D-NV) as an amendment (S. Amt. 3310) (pdf) to H.R. 2847, the more expansive jobs bill that cleared the House of Representatives three months ago. On Monday, the Senate voted 62-30 on a cloture motion to allow the slimmed-down bill to proceed. The HIRE Act, among other things, would exempt any employer that hires a worker who has been without full-time work for at least 60 days from paying the employer’s share of Social Security taxes on that worker for 2010, and extend a business tax deduction for certain capital investments.

The HIRE Act will now be sent back to the House for its approval of the replacement language before President Obama can sign it. It is anticipated that Sen. Reid will introduce a separate jobs-related bill this week to extend COBRA and unemployment benefits that are set to expire on February 28, 2010.

Meanwhile, other job creation bills continue to be introduced. On Monday, the American Job Creation and Investment Act (S. 3014) was introduced by Senators Debbie Stabenow (D-MI), Orrin Hatch (R-UT), Charles Schumer (D-NY), Olympia Snowe (R-ME), and Sherrod Brown (D-OH). This bill would allow companies to use existing alternative minimum tax (AMT) credits for investment in new manufacturing facilities and job creation in 2010 and 2011. According to a press release, “companies must use the credits to make investments in manufacturing facilities/equipment or create new jobs. The total amount of credits that can be utilized will be based on a percentage of qualifying wages or a percentage of new investments.” This bill has been referred to the Senate Finance Committee.