Employers get expanded incentives to hire vets

December 10, 2011

Employers have new tax incentives to hire military veterans as the Idaho economy begins to recover from the long recession. The Vow to Hire Heroes Act of 2011 took effect Nov. 22 and provides federal tax credits to employers who hire eligible veterans through the end of 2012. The credits range from $1,500 to $6,000. “When a business puts a veteran on the payroll, it is getting a proven leader with a solid work ethic who can solve problems efficiently while remaining focused and contributing to an improved bottom line,” said Elena Duncan, the Department of Labor coordinator for the tax credit program. “And employers get a tax break as well.” The Vow to Hire Heroes Act expands on the Work Opportunity Tax Credit for hiring financially struggling or disabled veterans. The new provisions create a tax credit of up to $2,400 for hiring a veteran who has received unemployment insurance benefits for at least four weeks and up to $6,000 for hiring a veteran who has received unemployment insurance benefits for at least six months. The Work Opportunity Tax Credit still provides a federal tax credit of up to $2,400 for veterans who are members of families that received food stamps for at least three months in the 15 months prior to their hiring; up to $4,800 for disabled veterans hired within a year of their release from active duty or unemployed for at least six months of the 12 months ending on the hiring date; and up to $9,600 for disabled veterans who have been unemployed for at least six months during the year prior to the hiring date. More information on the tax credits is online at http://labor.idaho.gov/dnn/idl/Businesses/EmployerTaxCredits/tabid/644/Default.aspx.