DC Job Growth Incentive Passes DC Council

Kwame also introduces new legislation to cut red tape for businesses

The DC Job Growth Incentive Act

Today, landmark legislation to address the jobs crisis in the District unanimously passed on first reading by the Council.  At-Large Councilmember Kwame R. Brown authored the “District Job Growth Incentive Act,” which was co-introduced by all members of the Council.  The legislation grants a business franchise tax credit to businesses that create at least 10 new jobs in the District.

“We have to change the way we think about small businesses in the District,” said Councilmember Brown.  “Too often, small businesses are overlooked even though they’re more likely to hire local residents and be a source of new jobs.  We need to give local businesses incentives to start hiring again and this will be a new tool in their toolbox for growth.”

The “District Job Growth Incentive Act” is supported by the DC Jobs Council, the Board of Trade, the DC Chamber of Commerce, Washington Interfaith Network, ABC of Metropolitan Washington, LiUNA, and Earth Aid.  The organizations joined the Council earlier this year to declare an unemployment crisis in the District and get behind the legislation.  (For more information, download the fact sheet here.)

During today’s legislative meeting, Councilmember Brown also introduced the “District Small Business Regulatory Flexibility Act.” Noting that the District ranked last on the Small Business Survival Index, Councilmember Brown, joined by his colleagues, introduced a measure designed to cut red tape and create streamlined regulations for small businesses that accomplish agency oversight goals without creating unnecessary costs that hinder economic growth.  The Small Business & Entrepreneurship Council, which publishes the index, endorsed the legislation.

SBE Council President and CEO Karen Kerrigan stated that, “Small firms are disproportionately impacted by regulatory costs and complexity, and a high burden serves as an impediment to business formation and growth.  I applaud Councilmember Brown for his leadership in introducing legislation that will improve the District’s climate for entrepreneurship and investment.”

“This legislation will spur District agencies to work more closely with the small business community and carefully consider the economic impact of regulations before they take effect,” said Councilmember Brown.  A recent study by the US Small Business Administration (SBA) calculated that small businesses with fewer than 20 employees spend over $7,000 complying with federal regulations each year.  The new legislation was drafted following a model created by the SBA.  The District is one of only 6 states and 2 territories that does not have a small business regulatory flexibility statute.  (For morning information, download the fact sheet here.)

For a list of legislative milestones on the path to a comprehensive jobs strategy, please visit:

http://www.thewedistrict.com/wp-content/uploads/2010/02/Legislative-Jobs-Milestones.pdf

For more information or to interview Councilmember Brown, please contact Press Secretary Michael Price at 202-445-4510 or mprice@dccouncil.us.