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Employers Get Tax Credit for Hiring Unemployed, Disabled Veterans

above-the-bar-logo-no12.jpgThe House of Representatives and the Senate recently voted unanimously and passed legislation giving tax credits to businesses that agree to hire veterans. The tax credits are a tiny piece of President Obama’s $447 billion jobs bill. After the vote for the bill, Obama stated that “No veteran who fought for our country should have to fight for a job when they come home.”

The bill has two types of tax credits for employers who hire unemployed veterans. The “Returning Heroes” tax credit provides employers with a maximum tax break of $5,600 per veteran who has been unemployed for at least 4 weeks while the “Wounded Warrior” gives a maximum credit of $9,600 per veteran. The exact amount of the credit depends on how long the veteran has been unemployed and if he or she has a disability connected to military service.

The bill also contains other provisions to expand education and job training benefits for veterans, improve job counseling prior to leaving the military and gives an additional year of job services for disabled veterans. The legislations also allows service members to apply for federal jobs before they leave military service and allows them to be placed in apprenticeships or on the job training programs with the military or defense contractors while on terminal leave.

The bill is being funded by adjusting ambulance reimbursement rates, adjusting origination fees on veterans home loans, and by reducing pensions for some veterans in nursing homes who are covered by Medicare through 2016
The passage of this bill is a great step towards helping veterans who need more than just thanks for protecting our country. There are almost a million unemployed veterans right now. In fact, the unemployment rate for the Iraq and Afghanistan war veterans is 12.1% while the national unemployment rate is 9.1%. Even more troubling is the 30% unemployment rate last month for veterans who are under 25 years of age.

Senate Finance Committee Chairman Max Baucus stated that “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.”

If you’re an employer looking to hire, consider hiring a veteran. If you hire a veteran who has been unemployed for more than 6 months and has a disability related to service, the bigger the tax break. JP Chase Morgan, Cisco Systems Inc., Delta Air Lines, AT & T Inc. and several other companies have said they plan to hire about 100,000 service members and military veterans by 2020. If you have recently hired a veteran or are in the process of doing so, call our call our Attorneys at Villanueva & Sanchala at (800) 893-9645 to help you fill out the proper paperwork to ensure you get the maximum tax credit you are entitled to.

Disclaimer: 

Thank you for visiting our Blog. This blog provides general information and thoughts about various employment law issues primarily in the New York Tri-State area and occasionally in other areas. You are welcome to read the posts. However, do not construe any content on this blog as legal advice or the creation of an attorney-client relationship. Again, we provide the content only for informational purposes. You should not make decisions based information on our blog since the application of the law depends on the facts and each situation may be different. In addition, the law in most jurisdictions is different and changes constantly and we make no representations that any information on our blog has been updated. The Blog should not be used as a substitute for competent legal advice from an experienced employment law attorney in your state or jurisdiction.

Sources:

Obama Signs Veteran Tax Credits Into Law, MilitarySpot.com
Disclaimer: 

Thank you for visiting our Blog. This blog provides general information and thoughts about various employment law issues primarily in the New York Tri-State area and occasionally in other areas. You are welcome to read the posts. However, do not construe any content on this blog as legal advice or the creation of an attorney-client relationship. Again, we provide the content only for informational purposes. You should not make decisions based information on our blog since the application of the law depends on the facts and each situation may be different. In addition, the law in most jurisdictions is different and changes constantly and we make no representations that any information on our blog has been updated. The Blog should not be used as a substitute for competent legal advice from an experienced employment law attorney in your state or jurisdiction.