Collins proposes payroll tax deferral for small businesses with new employees

Press release:

Congressman Chris Collins (NY-27) pushed the Main Street Revival Act (H.R. 952) in Batavia today. The bipartisan legislation will help promote economic growth and fill vacancies along America’s main streets. Collins is the lead Republican cosponsor of the legislation in the House.

“If Washington is serious about getting our economy back on track, we need to get serious about supporting American small business,” Collins said. “Encouraging and incentivizing new small businesses, particularly in struggling areas, will be critical to rebuilding our economy and this legislation does just that.”

The Main Street Revival Act would allow a small business to defer payment of payroll taxes for one year after it hires its first employee. The taxes will be paid back in equal installments over the subsequent four years. The deferment would hopefully provide meaningful relief to a new small business, or one which is just at the beginning stages of growth, which is traditionally a hard time for my small business owners.

“The ability to defer payroll taxes for one year may be just enough of a break to help a new small business owner hire one more person or purchase a new piece of equipment,” said Collins. “This legislation represents the practical, commonsense solutions Washington needs to take to nurture small business development, create jobs, and spur real economic development in our communities.”

To encourage growth in hard-hit areas, the legislation provides the tax deferral incentive to businesses located in a Historically Underutilized Business Zone (HUBZones) as defined by the Small Business Administration. In NY-27, sections of Batavia, Depew, Lancaster, Lockport, Medina, and Livingston County are designated as HUBZones.

The bill is also limited to true small businesses, those which expect to hire no more than 25 people during the year period for which payroll taxes can be deferred. Lastly, the H.R. 952 makes clear that nothing in the bill will reduce the Social Security or Medicare trust funds.

Collins was joined by Genesee County Chamber of Commerce President Lynn Freeman who praised the legislation.

Collins is partnering with Congressman Eric Swalwell, Democrat of California, on the legislation. “Good ideas that help our small businesses know no political party,” Swalwell said. “I welcome Rep. Collins of New York as the lead Republican cosponsor of the Main Street Revival Act. This bill was inspired by walking the Main Streets of my district and talking with business owners – Republicans and Democrats – about ways the federal government can help them get off the ground, hire employees and succeed. This is sensible legislation to speed up local economic development in the neighborhoods that need it most.”