H.R. 2847, also called the Hiring Incentives to Restore Unemployment Act, gives tax breaks to qualified companies that hire unemployed workers, extends financial limits of depreciable business allowances, gives tax credits to qualified bonds and authorizes highway and transportation improvements. H.R. 2847 was introduced to the Senate in 2009, according to Congress.gov, and was signed into law in March, 2010 by President Obama. It falls under the category of jobs bills, and is designed to reduce unemployment rates and improve the economy.
H.R. 2847 provides tax benefits for non-profit organizations, for-profit companies and public schools who hire and retain employees between the dates of February 3, 2010 and January 1, 2011, states Congress.gov. This bill reduces the amount of social security and retirement taxes that qualified organizations must pay on employees' behalf. Just like employers, however, employees hired under this bill must meet certain criteria. They must have been officially unemployed for at least 60 days prior to starting work with the tax-exempt company, or they must have worked no more than 40 hours at another organization before starting the new job.
To receive benefits under H.R. 2847, companies must keep new employees hired during the designated time for one full year, or 52 weeks. If they retain employees, companies are forgiven payment of the 6.2 percent social security tax that the Internal Revenue Service collects.
Although the Employment provision is the first and primary provision of this bill, it achieves several other legal benefits too. Title II of H.R. 2847 extends the limit of depreciable business allowances to $250,000. Title III offers a tax credit to holders of qualified tax bonds. Specifically, it exempts the following qualified bonds: zone academy, school construction, energy conservation and renewable energy. Under Title IV, H.R. 2847 provides funding, research and program planning for transportation and infrastructure improvement projects in the United States. Programs supported by this bill are the NHTSA's safety initiatives, including motorcyclist safety, promotion of seat belts and child safety campaigns, among more.