Tax Incentives
Currently there are state and federal tax credits available for companines that hire qualifying veterans. Consult with your accountant regarding your state's program. The President's recent change to the Federal program is outlined below. Please not that a veteran must meet specific criteria to qualify.
The White House
Office of the Press Secretary
Fact Sheet: Returning Heroes and Wounded Warrior Tax Credits
In August, President Obama called on Congress to enact tax credits that will help get veterans back to work. The Returning Heroes Tax Credit provides businesses that hire unemployed veterans with a maximum credit of $5,600 per veteran, and the Wounded Warriors Tax Credit offers businesses that hire veterans with service-connected disabilities with a maximum credit of $9,600 per veteran.
These tax credits were included in the American Jobs Act and were signed into law by President Obama on November 21, 2011.
Returning Heroes and Wounded Warrior Tax Credits
Under the Recovery Act, employers who hired certain unemployed veterans were eligible for a tax credit of up to 40 percent of the first $6,000 of wages, for a maximum credit of $2,400. This credit expired at the end of 2010.
On November 21, 2011, the President signed into law two new tax credits:
- The Returning Heroes Tax Credit is a new hiring tax credit that will provide an incentive for businesses to hire unemployed veterans.
- Short-term unemployed: A new credit of 40 percent of the first $6,000 of wages (up to $2,400) for employers who hire veterans who have been unemployed at least 4 weeks.
- Long-term unemployed: A new credit of 40 percent of the first $14,000 of wages (up to $5,600) for employers who hire veterans who have been unemployed longer than 6 months.
- The Wounded Warrior Tax Credit will double the existing tax credit for long-term unemployed veterans with service-connected disabilities.
- Maintain the existing Work Opportunity Tax Credit for veterans with service-connected disabilities (currently the maximum is $4,800).
- A new credit of 40 percent of the first $24,000 of wages (up to $9,600) for firms that hire veterans with service-connected disabilities who have been unemployed longer than 6 months.