Are You Getting Tax Credits for Hiring Veterans?

The "VOW to Hire Heroes Act of 2011" was signed into law in November 2011.  The Act provides tax incentives to employers who hire veterans.

How can businesses apply for the Credits?  Within 28 days of hiring a veteran, businesses must submit IRS form 8850 and either the Department of Labor's Employment and Training Administration's (ETA) form 9061 or 9062 to their Local State Work Opportunity Tax Credit Coordinator for certification. 

Where can I find my “local state Work Opportunity Tax Credit Coordinator?  Click here to download a listing of Work Opportunity Tax Credit Coordinators by State (starting on page 2)

What are the tax credits available under the “VOW to Hire Heroes Act of 2011”?

The Returning Heroes Tax Credit (For unemployed veterans)

• For the short-term unemployed: A 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 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 (For veterans with service-connected disabilities).

• Work Opportunity Tax Credit for veterans with service-connected disabilities (up to $4,800).
• A credit of 40 percent of the first $24,000 of wages (up to $9,600) for employers that hire veterans with service-connected disabilities who have been unemployed longer than 6 months.

Download  The Vow to Hire Heroes Act of 2011 Fact Sheet for more information.
Please visit our Veteran Resources page for more information on affirmative action for veterans.

For more information on the affirmative action compliance services offered by THOMAS HOUSTON associates, inc., please visit  our website or call (800) 330-9000. 

This information is intended to be educational and should not be considered legal advice on any specific matter.