ADAMS, Mass. — Ed MacDonald, candidate for state representative, has released the following information regarding small businesses in the commonwealth.

The 600,000 Massachusetts small businesses are vital to the financial well-being of the state's economy. Their contribution is essential for economic growth since they make up almost all employer firms in the state. As entrepreneurs and innovators, small-business owners represent a diverse group that continues to keep the state's economy productive. In these difficult times as much as we need to cut spending, we also need to invest in creating jobs.
The commonwealth has invested hundreds of millions, perhaps billions, of capital dollars into technology development initiatives over the past decade. Our state continues to be a leader in innovation and technology, outpacing competitor states in research and development, new patents, and federal innovation grants, according to Massachusetts Technology Collaborative. We need to build upon this success.

The bottom line is creating jobs. Massachusetts should establish a wage credit for each new job that is created. This credit should be for jobs created in the commonwealth and that stay here.

I propose the establishment of a wage credit for new jobs created by small companies of fewer than 100 employees in Massachusetts. This credit should be for up to 20 percent of the wages paid to any new hire or up to a maximum of $15,000. If the job is created in a high technology company in a field of projected growth such as biotechnology or nanotechnology, this credit should be increased to $25,000. Change the tax code for Massachusetts to be equal to the federal statute that allows businesses to claim losses for more than one year. This will help small businesses retain lost revenue and make them equal with federal regulations.

The credit should also increased to the higher level if the employer hires a dislocated worker, a lower income individual or a veteran. I recognize that small startup companies often do not have any real income in their formative years when they most need to hire new staff, so this tax credit should be refundable. To protect our taxpayers, these jobs must be retained for two years in the commonwealth, if not the value of the credit must be repaid to the state.