- The full credit doesn't kick in till $75K. Most new jobs are well below that.
- If they business is a S-corp/partnership - Obama's proposed income tax increase and FICA limit increases will not be offset by this credit.
- If you are a Schedule C/S-Corp/Partnership - the credit in all likelihood will not be creditable against AMT. Most tax credits are not good for AMT for individuals. So, you might get the credit for regular income tax, but then it'll be taxed right back under AMT.
Basically - the credit is useless for small business. When taxpayers normally talk about tax credits - they never work because the bulk of them are not creditable against AMT.