Businesses Eligible For Up To $9,600 In Tax Credits for Hiring Unemployed Veterans

The American Jobs Act provides incentives for businesses to hire unemployed veterans. Businesses hiring veterans who have been unemployed for specified periods of time will be eligible to receive incentives of $2,400 to $5,600 per veteran hired.

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 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 new 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 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 percent 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. Read more.

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