Driscoll looking to expand job-creation tool

Feb. 24, 2009

OLYMPIA – Legislation heard in committee today would dramatically increase a tax credit program aimed at creating jobs in rural and designated areas of the state. Rep. John Driscoll, D-Spokane, introduced the measure in the House that enhances the ability for growing businesses to hire new workers though a tax credit formula.

“These are difficult economic times and companies are reluctant to hire,” Driscoll said. “This is something the Legislature can now to get companies like manufacturing firms creating jobs soon.”

“This bill is an important tool to create jobs that will help jumpstart the economy.”

Community Empowerment Zones and rural counties both can use the credit that would be improved under the legislation. Community Empowerment Zones are areas working to revitalize and improve the neighborhoods and development in their zone. The six zones in the state were selected by the Department of Community, Trade and Economic Development based off of applications sent in by proposed zones.

Spokane is the most active CEZ in the state. Since 2001, 1,211 jobs have been created in 40 companies. Hollister-Stier, Seattle Lighthouse for the Blind, Cascade Windows, Kim HotStart, and Spokane Packaging are among the companies that have added jobs and used the credit.

“Both on the federal and state level, people are working to improve the economy,” Driscoll said. “This bill is our chance to give local communities a tool to use that will create good-paying jobs in fast growing companies.”

The measure, House Bill 1981, increases a business’s ability to start hiring by moving away from the current requirement that they have a 15 percent increase in their workforce to qualify. The bill would only require that they are hiring new workers. The credit is $2,000 for every job created, unless the position receives wages and benefits over $40,000—then the credit is $4,000.

Sen. Lisa Brown, D-Spokane, is the prime sponsor of the companion legislation, Senate Bill 5825.

House Bill 1981 now awaits executive action in the House Finance Committee.

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Rep. John Driscoll, (360) 786-7962
Print-quality photo: www.leg.wa.gov/documents/House/Members/Photos/Driscoll.jpg

Staff contact – Andrew Dziedzic, (360) 786-7218

Information on HB 1981: http://apps.leg.wa.gov/billinfo/Summary.aspx?bill=1981&year=2009