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Jean   Murray

New Law Gives Businesses Tax Credits for Hiring Unemployed Veterans

By December 1, 2011

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President Obama just signed into law the Returning Heroes Tax Credit, giving businesses tax credits for hiring unemployed veterans. According to Business Week, the law will provide businesses up to increasing amounts of tax credits, depending on how long the veteran was unemployed.

The legislation will provide a $5,600 tax credit for hiring long-term unemployed veterans, $2,400 for hiring short-term unemployed veterans and credits of up to $9,600 for hiring unemployed veterans with service-related disabilities. (U.S. Senate Finance Committee)

The credit applies for eligible veterans starting work after November 21, 2011, and before January 1, 2013.

Remember, these are tax credits (not expense deductions), which come out of your business's taxable income before expenses are deducted, so they mean more.

The IRS has not yet issued details on how this tax credit can be taken. I'll let you know when I hear something. In the meantime, if you hire a veteran who was previously unemployed, try to get some record of the length of the unemployment period.

More about Tax Credits - How They Work


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