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HOOSIERS FIRST Getting

INDIANA

Back on Track

House Democratic Caucus

JOBS PLAN


Getting

INDIANA

Back on Track

Getting Indiana Back on Track With session nearing an end, much has been accomplished through hard work and bipartisanship in both chambers of the General Assembly. We moved swiftly to cap property taxes permanently, fill the gaps in those caps and reform local government. We focused on jobs by guaranteeing Hoosiers will make up 80% of the workforce on state and local public works projects and passing a small business loan program to increase access to capital. House Democrats started this session putting job creation as priority number one. Unfortunately, Governor Daniels has failed to offer any plan to put Hoosiers back to work. Until the Governor is willing to face the fact that Hoosiers are hurting, a bipartisan effort to put Hoosiers to work seems unlikely. The Republicans have offered a plan: delay the increases in Unemployment Insurance Premiums to help businesses during this tough economy. In an effort to be bipartisan, we have moved this bill forward and will offer our own Hoosiers First jobs plan to be added on the House floor. The Hoosiers First plan House Democrats have crafted will create jobs and get people back to work and off unemployment by helping small businesses grow, creating tax incentives to create new jobs, and holding companies accountable for promises they make to create new jobs. Our bipartisan plan will create a positive environment for Indiana businesses and workers and help get our state’s economy moving again.


Getting

INDIANA

Back on Track

Tax Incentives to Create New Jobs Job Creation Tax Credit: Incentivizing Small Businesses to Hire Unemployed Hoosiers House Democrats believe we must create new tax incentives to encourage businesses to hire unemployed Hoosiers during this recession. Small businesses are the engine of our economy and are responsible for 80 percent of all new job creation. This tax credit is directed to businesses with 150 or fewer employees. The bill requires the new hires be either unemployed Hoosiers or Indiana Veterans. The credit is equal to $3,000 for each employee hired above the business’ 2009 base employment. This will ensure that we are rewarding creation of new jobs rather than the rehires that will occur as we come out of this deep recession.

New Employer Tax Credit: Attracting New Businesses to Restart Indiana’s Economy Many Indiana communities have seen businesses become boarded up and jobs sent out-of-state and overseas. House Democrats believe we should pass incentives to attract new companies to Indiana and create thousands of new jobs for Hoosiers. This bill provides a tax credit for new Indiana businesses equal to 50% of each new business’ tax liability for the first 2 years of operation in the state. This credit will be required to be assigned as follows: • 25% as a bonus of up to $3,000 for each employee of the new businesses to give workers more disposable income where each dollar spent will help other Hoosier businesses; and • 75% as a credit to the new business to encourage more reinvestment in Indiana.

Refocusing IEDC: Targeting State Resources to the People and Areas Who Need it Most Ensure that the state’s unemployed workers are given first consideration for state tax incentives to companies for new job creation. Whenever a business incentive package is being developed, this bill will require IEDC to give priority consideration to a county where a company has closed and/or reduced its workforce

Reviewing State Economic Development: Assessing State’s Effort to Grow Economy Establishing a commission to review the state’s tax incentives and economic development initiatives and determine what more can be done to help get our economy moving again.


Getting

INDIANA

Back on Track

Helping Small Businesses Creating a Small Business Ombudsman: Making Small Businesses a Priority House Democrats believe we must do more to help Indiana’s small businesses weather this tough economy. This bill establishes a Small Business Ombudsman to emphasize the state’s desire to help these businesses who will lead the way out of this recession. This ombudsman will help small businesses interact with state government through working with state agencies to provide better regulatory flexibility, streamline paperwork, audit outdated information requests, and performing a cost/benefit analysis of state regulations and their impact on small businesses.

Small Business Loans: Re-directing Current State Resources to Help Small Businesses Access to capital is scarce, especially for small businesses. We believe many Indiana businesses would benefit from low-interest loans to help stay afloat and keep from closing their doors. This bill requires the IEDC to re-assign $1.5 M in current state resources to the Small Business Loan Program.

Expanding EDGE Credits: Allowing all Small Businesses Access to Current Incentives Removes provision that limits EDGE Credits to just big businesses to level the playing field and allow small businesses access to this incentive as well.

Microenterprise Partnership Program: Better Protecting Small Business Owners Moves administration of the Microenterprise Partnership Program from IEDC to the Office of Housing and Community Development to facilitate more focus on this important program designed to help ensure small businesses stay open.

Training Our Workforce: Using Indiana Colleges to Retrain Unemployed Hoosiers Requires the IEDC to encourage collaborative efforts between Indiana postsecondary educational institutions, local economic development commissions, and businesses to customize job training programs at postsecondary educational institutions to encourage employment in high technology industries. This bill also changes Indiana’s unemployment system to allow more dislocated and unemployed Hoosiers to get trained for a new job and not lose their unemployment benefits.


Getting

INDIANA

Back on Track

Raising the Bar on Corporate Accountability Clawback on Tax Incentives: Holding Companies Accountable While House Democrats believe state tax incentives are a good tool to attract new companies promising to create new jobs, the state should be able to recoup these dollars if a company doesn’t live up to its end of the deal. This bill will ensure that companies receiving state tax incentives create the jobs they promised by requiring the IEDC to clawback state incentives from companies that don’t meet the standards of the agreement under which the incentive was rewarded.

Closing Corporate Loopholes: Making Companies Pay Their Fair Share House Democrats believe that good Indiana companies are getting treated unfairly because of a few bad actors who are cheating the tax system. Millions of state payroll taxes are being avoided through worker misclassification, and this bill contains provisions that will make those avoiding taxes pay their fair share. By requiring combined reporting and strengthening our laws on real estate tax shelters, our hope is that this bill will level the playing field and increase state revenues through requiring more business transparency and prohibiting known tax shelters.

Indiana Worker Preference: Hoosier Tax Dollars Putting Hoosiers First This bill requires contractors employ at least 80% of their workers from Indiana in order to be awarded public works contracts by the state. House Democrats believe these projects, funded by Hoosier tax dollars, should go toward hiring Hoosier workers. Allows for an exemption if federal funding is jeopardized because of this requirement.


Getting

INDIANA

Back on Track

H.I.R.E: Helping Indiana Restart Employment The HIRE Program is designed to provide emergency funding to private and public employers to encourage them to create new jobs and hire unemployed Hoosiers. Funding for this program comes mainly from one-time federal stimulus funds that Indiana has yet to draw down to help Hoosiers. Indiana is poised to receive $100 Million if the state matches it by investing $20 Million in state dollars to this program. This program is modeled after the Mississippi STEPs program, which was implemented by Republican Governor and Presidential hopeful Haley Barbour and been revered in the New York Times and started in 20 other states. This bill will bring Indiana $100 Million in federal stimulus dollars that would otherwise be left on the table and not put toward job creation. Hoosier taxpayers not only need jobs, but deserve to get their fair share of the tax dollars they send to Washington. This program will increase employment, incentivize businesses to begin hiring again and assist dislocated workers. The $120 Million job creation program could put nearly 10,000 Hoosiers back to work at jobs making $40,000 to $50,000 per year.


2010 Jobs Plan