President Obama signed into law two new tax credits for businesses hiring unemployed veterans.
Effective Nov. 21, 2011, employers can apply for the Returning Heroes Tax Credit and the Wounded Warriors Tax Credit offering:
- up to $5,600 for hiring long-term unemployed veterans (more than six months);
- up to $2,400 for hiring short-term unemployed veterans (four weeks – six months); and
- up to $9,600 for hiring vets with service-related disabilities who have been unemployed for six months or longer in the past year.
To receive a tax credit for hiring veterans, business owners must apply with their state workforce agency within 28 days of hiring by filing Form 8850, Pre-Screening Notice and Certification for Work Opportunity Tax Credit (WOTC).
These new credits are scheduled to expire after Dec. 31, 2012. (Note: WOTC credits for other targeted groups are still due to expire. For more information, read our article on the Work Opportunity Tax Credit.)
Photo Credit: S. Braswell