Incentives for Business to Hire Veterans
Veterans offer a distinct set of qualities and skills that can translate to the civilian business workforce and add value to an organization. They're strong leaders and team players with core values such as integrity, loyalty and commitment. They have a proven ability to perform effectively under pressure. They understand the commitment to achieving organizational goals. They know that proper training leads to good results and they are ready to train and ready to work. These values are good assets for employers and hiring a veteran makes good business sense.
Recently, new tax credits were enacted and signed into law 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 Warrior 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 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% of the first $6,000 in 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% of the first $6,000 of wages (up to $2,400) for employers who hire veterans who have been unemployed a least 4 weeks.
- Long-term unemployed: A new credit of 40% 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% 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.