Nonprofits Included in White House Jobs Proposal
The White House began outlining the details of a $33 billion job-creation proposal designed to spur hiring. This proposal specifically includes nonprofits, demonstrating recognition by federal policymakers that nonprofits play a vital role not only as service providers, but also as employers important to the economic stability of local communities.
The proposal includes the following (as summarized by the National Council of Nonprofits):
- -Nonprofits of any size would get a $5,000 tax credit for every new employee they hire in 2010, retroactive to the beginning of the year.
- -Nonprofits of any size that increase the hours or wages of employees making less than $106,800 can be reimbursed for the additional Social Security taxes incurred.
- -The maximum benefit for any one nonprofit would be capped at $500,000.
- -The Administration estimates that 1 million small employers (including nonprofits) will take advantage of these incentives.
The White House has created a fact sheet outlining the details of this proposal.
Though this is only a proposal, it is encouraging that the proposed tax credit structure will benefit nonprofit employers as well as for-profit employers. It is unclear how many nonprofits in Maine would hire more people because of such an incentive. We’d love to hear your thoughts. Would your organization hire more people or give current employees a salary increase if some of those costs would be offset by a credit on your quarterly payroll taxes? Email Brenda Peluso with your thoughts.