U.S. Senator Russ Feingold has introduced legislation that would create a tax credit for organizations that hire new employees, expand work hours for their current workforce, or raise worker pay. 

The tax credit would:

• Amount to 15 percent of the increase in eligible payroll for 2010 and 10 percent of the increase in 2011.
• Make pay hikes for high-salary workers ineligible.
• Be based on a an organization's total eligible payroll so it would reward firms that expand work hours or raise pay as well as hiring more workers.
• Be calculated on a quarter over year-ago-quarter basis to avoid seasonal employment spikes. For example, wages for the first quarter of 2010 are compared with wages for the first quarter of 2009.
• Not be eligible for the wages of firm owners and their family members.

The tax credit would expire after two years.