Washington, Apr 21 – Congressman Adam Smith (WA-09) and Congressman Scott Murphy (NY-2) introduced legislation today to provide new incentives to locate jobs here in the United States and make America more globally competitive.
“Over the last few years, millions of hard working Americans have lost their jobs due to the recession,” said Congressman Adam Smith. “While the economy is beginning to show signs of recovery, we must do more to support hardworking Americans. The America Recruits Act will help do just that by encouraging job growth in expanding fields, while also incentivizing companies to create new, economically viable job opportunities in the United States rather than abroad.”
Specifically, the America Recruits Act would create a new program within the U.S. Department of Commerce to provide forgivable loans for up to $10,000 for each new high-tech and manufacturing job relocated from a foreign country to a high unemployment area in the US. This forgiveness would help defer the costs of setting up the new jobs back in the United States.
Below is more information about the America Recruits Act:
Loans of up to $10,000 per job would be awarded by state, local or regional economic development agencies for use in augmenting their overall incentive package. These agencies would be required to provide at least a 25% match.
Loans would be interest-free, and would be disbursed in two, $5,000 per-job-per-year installments to the employer.
If the firm lives up to its promise to bring back eligible jobs, its initial installment will be forgiven after the first year. This would make the firm eligible for the second loan installment of $5,000. If the firm retains the eligible jobs for the entire second year of the loan, the second installment will also be forgiven at the end of the second year.
If a loan recipient fails to honor its commitments, it must repay the first installment and would not be eligible to receive the second. If it fails to make the second certification, it must repay both installments.
Loans could not be used to move a job from one state to another. They are designed to provide an incentive to locate jobs in America that currently are located overseas.
It is estimated that the legislation could create nearly 24,000 direct and indirect jobs.