Central Pennsylvania businesses that create jobs could save between $3,432 and nearly $4,623 in taxes on each additional worker under a proposal backed by U.S. Sen. Bob Casey, D-Pennsylvania.
The bill, known as the Small Business Jobs and Tax Relief Act of 2012, would give small businesses a tax credit equal to 10 percent of the salary increase over their 2011 payroll.
Nevada Sen. Harry Reid introduced the proposal. Casey is one of six co-sponsors.
Businesses have to either add jobs or increase pay for existing workers to qualify for the tax credit, Casey said.
The average tax savings per worker by county would be as follows:
• Cumberland County: $4,238
• Dauphin County: $4,622.80
• Lancaster County: $3,816.80
• Lebanon County: $3,432
• York County: $4,102.80
The tax credit is capped at $500,000, which is the equivalent of a $5 million payroll increase, according to the legislation. It would be available for one year beginning with the first full quarter after enactment, Casey said.
The bill could be taken up by the U.S. Senate after the Memorial Day recess, said Ian Jannetta, a Casey spokesman.