President Obama has signed into law increased tax credits for hiring certain veterans. The credits are part of the Work Opportunity Credit, which requires that employers certify through state jobs agencies that employees qualify for the credits.
The veteran credits available effective for veterans hired starting November 22:
- A maximum $4,800 credit (40% of the first $12,000 in qualifying wages) for veterans with a service-related disability hired within 12 months of discharge (no change from prior law).
- A maximum credit of $9,600 (40% of the first $24,000 in qualifying wages) for veterans with a service-related disability who have been unemployed for at least six months of the prior 12 months.
- A maximum credit of $5,600 (40% of the first $14,000 in qualifying wages) for non-disabled veterans who have been out of work for at least six months out of the prior 12 months.
- A maximum credit of $2,400 (40% of the first $6,000 in qualifying wages) for veterans who have been unemployed at least four weeks, but less than six months, in the past year.
Employers claiming the WOTC have to have the employee certified as qualifying by the state job service before hiring; they may instead complete a "pre-screening notice (Form 8850) by the date of the employment offer and submit it to the state agency within 28 days after the employee start date.
While the rest of the WOTC expires at the end of this year (unless it gets extended again), the veterans credits apply for hires through 2012.
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