Patrick Says Bill Will Aid Small Business
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The measure provides tax credits for businesses that create new jobs, eases health care and unemployment insurance costs for employers and creates a new organization dedicated to providing businesses with the financial capital and resources they need to grow.
"Small businesses account for 85 percent of Massachusetts businesses, and for them this is an economic emergency," said Patrick at an address Tuesday morning to the Greater Boston Chamber of Commerce. "If we want new jobs, we need to focus special attention to meeting the needs of small businesses."
The plan includes a tax credit for businesses with 50 workers or fewer that create full-time jobs and maintain them for a year, earning $2,500 for each one. There's $50 million targeted to the incentive so credits will be awarded on a first-come, first-served basis.
Small businesses were particularly hit hard with health insurance premium increases this year. Patrick's directing the commissioner of insurance to immediately file an emergency regulation that would require insurance carriers to file increases in advance for commission review. The bill would expand the office's authority in that area.
The new legislation would trigger a presumptive disapproval of health insurer rates that are significantly above the Consumer Price Index for Medical Services. The bill also provides for similar oversight of provider rates to ensure shared responsibility for controlling costs.
Additionally, it gives smaller companies the choice of more affordable plans beginning this July by requiring health insurance carriers in the small group market to offer at least one premium plan that's at least 10 percent lower.
The proposal also freezes the unemployment insurance rates this year, a move expected to save an average of $158 per employee, or $391 million total, and expands the seasonal employer exemption to 20 weeks.
It consolidates the three agencies responsible for small-business finance into the Massachusetts Growth Capital Corp. The MGCC would be funded by a $25 million capital bond authorization and by a $15 million transfer from the Emerging Technology Fund.
For more information, go to mass.gov/governor/jobs.
