Wednesday, November 23, 2011

New Tax Credits for Hiring Veterans Signed into Law

Employers were given yet another incentive to hire veterans on November 21, 2011, when President Obama signed into law two new tax credits, the Returning Heroes and Wounded Warrior Tax Credits. The Returning Heroes Tax Credit provides incentives of up to $5,600 for hiring unemployed veterans, and the Wounded Warriors Tax Credit doubles the existing Work tax credit for long-term unemployed veterans with service-connected disabilities to up to $9,600.

Eligible veterans under the Returning Heroes Tax Credit include those that are short-term unemployed for which employers will get a credit of 40% of the first $6,000 of wages (up to $2,400) for veterans who have been unemployed at least 4 weeks and those that are long-term unemployed for which employers will get a credit of 40% of the first $14,000 of wages (up to $5,600) for veterans who have been unemployed longer than 6 months.

The Wounded Warrior Tax Credit maintains the existing Work Opportunity Tax Credit for veterans with service-connected disabilities not more than one year after being discharged from the military, which is up to 40% of the first $12,000 of wages (up to $4,800), and adds a new credit of 40% of the first $24,000 of wages (up to $9,600) for employers that hire veterans with service-connected disabilities veterans with service-connected disabilities who have been unemployed longer than 6 months.

"When employers hire Veterans, they add exceptional employees with character, courage, creativity, team-building skills, and discipline that will help their businesses grow and succeed. More than ever, America needs Veterans’ proven skills, knowledge, and work ethic to fire up our economic engine and to invest in our future,” stated Veterans Affairs Secretary Eric K. Shinseki in a press release. Tax credits like these spotlight the talented workforce available in our nation's veterans.

No comments:

Post a Comment