By PlanetLaundry staff | Feb 21, 2012
Perhaps you’ve heard that General Electric plans to hire 5,000 veterans within the next five years. Although the move certainly is motivated by moral responsibility, the company has a financial incentive as well.
The VOW to Hire Heroes Act, which was signed into law last November, extends up to $9,600 in tax credits to employers who hire unemployed veterans. The rates are per-employee and apply to qualified veterans who begin work before January 1, 2013.
In addition, the law has added two categories of veterans to the Work Opportunity Tax Credit. Under the changes, employers can deduct up to the following amounts:
• $2,400 for a veteran who has been unemployed for more than four weeks.
• $5,600 for a veteran who had been out of work for more than six months.
• $9,600 for a veteran who has been out of work for more than 6 months and has a service-related disability.
Whether or not a veteran qualifies depends on a variety of factors. This includes when they were last on active duty; whether they receive benefits under the Supplemental Nutrition Assistance Program; and how many hours they work. Therefore, employers must obtain certification before claiming a tax credit for hiring a veteran.
Because this law is so new, the IRS is continually releasing updated instructions and guidance on the rules. If you think you have an employee who qualifies under the new regulations, talk to a tax attorney or your accountant about how you can get a tax credit for hiring a veteran.