Congressman Eric Swalwell (D-Dublin) joined a Republican colleague last week in introducing a bill to allow certain small businesses to defer paying payroll taxes during their first year in operation.
"When small businesses can get off the ground, the whole community wins," Swalwell, whose district includes Pleasanton, said in a statement. "The Main Street Revival Act would relieve small businesses of a significant expense during their crucial first year, giving them more capital to grow and succeed."
The tax deferrals under the Main Street Revival Act -- House Resolution 2409 -- would be available to new businesses expected to hire 25 or fewer employees in their first year and located within historically underutilized business zones, dubbed HUBZones. Businesses that opt in to the program would pay the deferred taxes in installments over the subsequent four years.
Alameda County has 100 areas deemed HUBZones, but none in Pleasanton, according to the U.S. Small Business Administration, the federal agency overseeing the program. The county HUBZones are mainly in Oakland but other locations include Berkeley and Hayward.
Pleasanton Downtown Association (PDA) officials are currently reviewing the bill and have not yet taken a stance on it, according to executive director Laura Olson.
"The California Main Street Alliance (CAMSA), of which I am vice president of the board, will be reviewing this and other proposed legislation at our June board of directors meeting. The PDA will wait to see CAMSA's recommendation before announcing our position," Olson said.
Swalwell noted that he also introduced the Main Street Revival Act last congressional term -- the first piece of legislation he introduced in Congress. That bill was referred to the House Committee on Ways and Means in March 2013 without further action.
The local congressman reintroduced the bill last week with Congressman Chris Collins (R-N.Y.).
"If Washington is serious about getting our economy back on track, Congress needs to get serious about supporting American small businesses," Collins said in a statement. "This legislation represents the practical, commonsense solutions Washington needs to take to nurture small business development, create jobs and spur tangible economic development in our communities."
The bipartisan bill was referred to the Ways and Means Committee on May 19.