Philadelphia City Council has approved a bill to give a $5,000 tax credit to businesses that hire a new worker and pay at least $12 an hour.
The tax break is designed to encourage businesses to turn minimum-wage jobs into better opportunities. The legislation offers a $5,000 tax credit annually for five years for creating a post paying at least $12 an hour.
Steven Mullin, president of the financial consulting firm Econsult, said the bill could represent a net gain for the city.
“My guess, based on the types of employment that they are talking about here, it would have a positive net effect,” he said, adding that would be the case despite some businesses that would get a subsidy for people they are already hiring.
Mayor Michael Nutter said he’s considering whether to sign the bill sponsored by Councilman Wilson Goode Jr.
“I’ve actually not read the legislation, I’m not aware of the legislation,” he said. “It seems certainly consistent with other efforts we’ve worked with the councilman on.”
Nutter says he hopes to review the bill over the weekend.