Noteboom The Law Firm

New Tax Credit For Employers Hiring Veterans

June 4, 2010 - One thing recent years have shown us is how difficult it is for veterans to find gainful employment once they have rotated back to the civilian world. In an effort to remedy this, Max Baucus (D-Mont.) and Chuck Grassley (R-Iowa) introduced a new bill to help veterans. Should their legislation pass, employers hiring veterans who have been recently discharged will receive a $6,000 streamlined tax credit.

Currently, small business owners are able to use the Work Opportunity Tax Credit (WOTC) when they hire veterans. This credit, however, contains a certification system that is difficult and burdensome to use. Should this new bill pass, it will eliminate the difficulties business owners face in using the WOTC.

The tax cut included in the bill is designed to create new job opportunities for veterans. Employers are encouraged to do the right thing, hire veterans, and collect their incentive. Veterans are unemployed at a rate exceeding that of civilians and have been ever since September, 2001.    

The new legislation will allow recently discharged veterans to provide the required Department of Defense (DoD) documentation and not have to process through the WOTC's difficult certification procedures. Every veteran able to produce 180 days of active duty time on their discharge paperwork qualifies for the credit.

Despite the common misperception, veterans do have skills that translate into the civilian world very well. Should this legislation pass, employers will have a much easier time hiring veterans and using their tax credit.