Governor Patrick Announces Plan to Support Small Businesses and Create Jobs

Wed, 03/10/2010 - 10:57 — Mark Carlson

 

Governor Patrick Announces Plan to Support Small Businesses and Create Jobs
Bill includes tax credits for job creation, unemployment insurance freeze, tools to reduce health care costs

transcript iconRead the Governor's remarks from the Chamber Event
Photos from event (also available on our Flickr account):
 
BOSTON – Wednesday, February 10, 2010 – Building on his continued efforts to foster job creation and economic growth in the Commonwealth, Governor Deval Patrick today filed legislation to help small businesses hire new workers and reduce the cost of doing business.
The Governor’s legislation provides tax credits for businesses that create new jobs, eases healthcare and unemployment insurance costs for employers and creates a new organization dedicated to providing businesses with the financial capital and resources they need to grow.
“Small businesses account for 85 percent of Massachusetts businesses, and for them this is an economic emergency,” said Governor Patrick at an address this morning to the Greater Boston Chamber of Commerce. “If we want new jobs, we need to focus special attention to meeting the needs of small businesses. That means addressing their need for access to working capital and credit, helping deal with escalating health care costs in the short term, simplifying necessary and eliminating unnecessary regulation, fixing the unemployment insurance system and helping to train ready workers.”
The Governor’s plan builds on the job creation efforts undertaken over the last three years, and delivers on many of the initiatives outlined at the Patrick-Murray Administration’s Economic Summit held last October.  Since the beginning of the Administration the Governor has prioritized significant investments in infrastructure, tax incentives for businesses, innovative financing for development, streamlined permitting and other initiatives. The Governor has also instituted policies to create jobs in emerging industries such as Life Sciences and Clean Energy, positioning Massachusetts as a global leader in these fields. 
"Small businesses are the anchor for many of our regional economies," said Lieutenant Governor Timothy Murray. "This proposed legislation will not only provide support for their business needs, but also incentives to foster job creation and economic stability across all regions of the Commonwealth."
The plan includes the following elements:
Small Business Job Creation Tax Credit
A central piece of the Governor’s proposal is a tax credit for small businesses that will help create thousands of new jobs this year. Small businesses that create and retain new full-time equivalent (FTE) jobs this year will be awarded a $2,500 tax credit for each net new job they create.
The credit, capped at $50 million, will be awarded on a first-come, first-served basis to small businesses defined as those with 50 or fewer employees. To qualify, companies must create a new FTE position and retain that position for at least one year