Schiavo introduces hiring incentive bill

Assemblywoman Pilar Schiavo, D-chatsworth, announced the introduction of Assembly Bill 2294, a bill that incentivizes the hiring of new employees by expanding businesses eligible for tax credits with an incentive to hire people from under-resourced communities, supporting businesses and encouraging investment in good jobs for people who need them most, according to a release from the assemblywoman’s office.

“AB 2294 is a win-win, giving businesses the ability to hire new employees from communities that are looking for good-paying jobs,” Schiavo said in the release. “I’m excited to introduce legislation that supports businesses, creates good high-paying jobs, and supports those looking for employment.”

The New Employment Credit was established in 2013 to incentivize the hiring of individuals who have historically faced barriers to employment, including veterans. This bill would expand the businesses eligible to hire new employees in the form of tax credits, eliminating certain location requirements, expanding to more qualified employees, and reaching a much broader range of businesses.

The Legislative Analyst’s Office states that the low amounts of claimed credits through this program suggest that the existing tax credit limitations have been challenging for businesses to use, citing the credits’ high wage threshold, small credit amount, complexity, uncertainty, and interaction with other credits as contributing to low participation.

“AB 2294 seeks to break down barriers and limitations, fully realizing the NEC’S potential by creating more job opportunities for those who have difficulty landing jobs and who may be at risk of homelessness,” Schiavo added.