Veterans Tax Credit Bill
On November 21, 2011, the President signed into law the VOW to Hire Heroes Act of 2011. This new law provides an expanded work opportunity tax credit to businesses that hire eligible unemployed veterans and for the first time also makes part of the credit available to tax-exempt organizations. Businesses claim the credit as part of the general business credit and tax-exempt organizations claim it against their payroll tax liability. The credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2013.
The VOW to Hire Heroes Act will provide tax credits of up to $2,400 for employers who hire veterans who have been unemployed at least 4 weeks; up to $5,600 for hiring veterans who have been unemployed longer than 6 months; and up to $9,600 for businesses that hire veterans who have service-connected disabilities and have been unemployed longer than 6 months.
The bill includes the Returning Heroes and Wounded Warriors Work Opportunity Tax Credit, which creates four new categories of veterans who are eligible for WOTC certification:
- Veterans who have received at least four weeks of unemployment benefits in the year prior to their hire. The credit is equal to 40 percent of the first $6,000 in wages paid to them, for a total of $2,400 .
- Disabled veterans who have been discharged or released from active duty in the year prior to their hire. The credit is equal to 40 percent of the first $12,000 in wages, for a total of $4,800 .
- Veterans who have received at least six months of unemployment benefits in the year prior to their hire. The credit is equal to 40 percent of the first $14,000 in wages, for a total of $5,600 .
- Disabled veterans who have received at least six months of unemployment benefits in the year prior to their hire. The credit is equal to 40 percent of the first $24,000 in wages, for a total of $9,600 .
