PROVIDENCE, RI -- U.S. Senator Jack Reed today said that passing a new, targeted jobs bill is an essential step in his continuing efforts to re-energize the economy and fuel economic growth in Rhode Island.

Next week the U.S. Senate is scheduled to vote on a new $35 billion job creation initiative that is fully paid for and includes tax breaks for businesses that hire unemployed workers and purchase new equipment. It also extends the Highway Trust Fund, investing in job-creating transportation projects for Rhode Island, as well as expands the Build America Bonds program, which provides low-interest financing for state and local governments to invest in infrastructure upgrades.

"This streamlined jobs bill will help spur companies to hire more workers and cut taxes for small businesses without running up the deficit. We need to get businesses rehiring, banks lending, and restore consumer confidence. This is the first part of a targeted, cost-effective approach to quickly encourage private sector job growth and provide aid to states for critical transportation upgrades," said Reed. "Every component of this bill should have bipartisan support. I hope we can finally break the stalemate that has frustrated past efforts to create jobs, help small businesses hire new employees, and repair our infrastructure. After passing this bill we need to swiftly move forward on initiatives to get credit flowing to small businesses and provide additional help for middle class families."

The Senate jobs bill includes:

Job Creation Tax Exemption: Employers hiring a person in 2010 who had been unemployed for at least 60 days will be offered an exemption from Social Security payroll taxes. Additionally, for every employee retained for at least a full year, the employer will qualify for a $1,000 income tax credit on their 2011 tax return.

Small Business Investment Expensing: Small businesses may write off the costs of major purchases, freeing up capital that will allow them to grow.

Highway Trust Fund Extension: This extension will protect jobs by extending existing highway and transit programs, providing state and local entities with the certainty they need to make decisions on projects. And it will create jobs by making funding available for transportation and infrastructure projects in Rhode Island.

Build America Bonds: Build America Bonds provide a low-cost way for state and local governments to fund job-creating projects such as work on courthouses, schools, roads, public safety buildings and public utilities. This provision makes existing Tax Credit Bonds for school construction and rehabilitation, renewable energy, and energy conservation projects eligible for the Build America Bond benefits.

Senator Reed stated that this is the first of several job-related initiatives that Congress must pass in the near future. Reed continues to lead the effort to extend federal unemployment insurance and COBRA benefits, which are set to expire at the end of this month, to help Americans who are still struggling with the fallout from the Bush recession. Reed is also working with his colleagues to break the credit log-jam that is hampering so many small businesses in Rhode Island.

"We need to wisely invest federal resources that will lay the foundation for economic growth in the private sector, upgrade our infrastructure, and improve the quality of life for all Rhode Islanders," continued Reed.

Reed has long advocated for increased federal investment in infrastructure projects, aid to states, and a boost in funding for education, police, and fire departments. This federal aid is critical to Rhode Island. Governor Carcieri's latest budget blue print relies on the state receiving about $95 million in additional federal FMAP funds, but Republicans in Congress are threatening to block that funding.

"We are facing a national recession and we need a national response. I hope we can get strong bipartisan support for these common sense provisions that will strengthen our economy and put more Americans back to work," concluded Reed.