Tax Credit for Hiring Veterans
President Obama signed into law on November 21, 2011 a bill that provides tax credits for hiring veterans and repeals a 3 percent tax withholding requirement on government contractors. Both provisions had been part of Obama’s jobs bill, the American Jobs Act, but had originated in bills with bipartisan support.
“Back in September, I sent Congress a jobs bill,” said Obama. “And in it, I proposed a tax credit for any business that hires a veteran who’s been unemployed for at least four weeks. I proposed an even bigger tax break if a business hires a veteran who’s been unemployed for at least six months. And if a business hires an unemployed veteran with a disability related to their service, I proposed doubling the tax break that we already have in place. Today, because Democrats and Republicans came together, I’m proud to sign those proposals into law. And I urge every business owner out there who’s hiring to hire a veteran right away.”
“No veteran returning home from fighting for our country and looking for work should be greeted with an unemployment check instead of a job,” said Senate Finance Committee Chairman Max Baucus, D-Mont., who had introduced previous bills to provide tax credits for hiring veterans with his colleague on the Finance Committee, Charles Grassley, R-Iowa. “Our veterans’ service earns them the right to a steady job when they return home, but unemployment among vets is at crisis levels. This tax credit will help solve the unemployment crisis and help veterans find work. Our veterans return home with unmatched leadership skills and motivation, making them valuable to businesses looking to hire. There’s more work to be done cutting red tape and making the process of claiming this credit easier, but this is an important start.”
The veterans jobs bill will provide a $5,600 tax credit for hiring long-term unemployed veterans who have been unemployed for six months or longer in the past year, $2,400 for hiring short-term unemployed veterans who have been unemployed for between four weeks and six months in the past year, $4,800 for service disabled veterans hired within one year of being discharged, and credits of up to $9,600 for hiring veterans with service-related disabilities who have been unemployed for six months or longer in the past year.