Harvey Peeler

Majority Leader’s Job Plan Will Give Tax Credits To Businesses That Hire Unemployed South Carolina Workers

Columbia, SC – April 28, 2009 – A jobs plan introduced just two weeks ago by South Carolina Senate Majority Leader Harvey Peeler has already passed the State Senate. Peeler’s “Jumpstart Plan” provides tax credits for businesses that hire unemployed state workers and grows our economy by promoting the private sector, not growing government. It was approved on second reading yesterday by a vote of 39-0. It was passed out of the Senate on third reading today.

Under Peeler’s plan any employer who hires an unemployed South Carolinian will receive a $100 per month tax credit for each employee hired beginning July 1, 2009. The tax credit is available for 24 months, a maximum of $2,400 per employee over two years.

Senator Peeler said, “Today the State Senate approved our jobs plan on a unanimous vote because we understand the dire circumstances too many families are facing. We’ve spent weeks talking about skyrocketing unemployment numbers and declining state revenues. We’ve talked about laying off teachers and closing prisons. Now we are moving past the problems and laying out a common-sense solution that can put South Carolina back to work.”

Peeler continued, “We can’t grow South Carolina’s economy with increased spending and big government projects on the backs of our state’s businesses and working families. Government isn’t the solution. Government is the problem. The solution must come from the private sector and the only thing government can do to help right now is to empower businesses and working families.”

Details of the “Jumpstart Plan:”

• Any employer who hires an unemployed South Carolinian will receive a $100 per month tax credit per employee beginning July 1, 2009.

• The tax credit is available for 24 months – maximum of $2,400 per employee in tax credit over a 2 year time.

• Defines an unemployed South Carolinian as:

o Someone who gets a job between July 1, 2009 and June 30, 2010

o Has been receiving unemployment benefits in SC for at least 4 weeks

o Remains in this position with the employer for at least 4 weeks – working a minimum of 35 hours per week

o Has no return to work date or promise of future employment

o Provides a notarized affidavit that the individual is a US citizen or has a green card

o Was unemployed immediately prior to being employed

• The employer becomes eligible for the tax credit when the employee has completed four consecutive weeks of work. A workweek consists of a minimum of 35 hours.

• The amount of tax credit cannot exceed the amount of taxes the employer pays in a year, but any amount in excess may be carried over to the succeeding year.

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