Wednesday, April 17, 2013

President Obama Calls for Permanent Tax Credits for Hiring Veterans

Under President Obama, there have been wide-ranging legislation and programs designed to train, educate, license, and employ veterans, including Joining Forces, the Veteran Gold CardVeterans Job Bank, Veteran Skills to Job Act, and Veteran’s Retraining Assistance Program (VRAP). In this ongoing effort to quell veteran unemployment, the Obama Administration has also incentivized employers for hiring veterans through two tax credits, Returning Heroes and Wounded Warriors tax credits.

Set to expire December 31, 2013, the Returning Heroes Tax credit provides incentives of up to $5,600 for hiring unemployed veterans, and the Wounded Warriors Tax Credit doubles the existing Work Opportunity Tax Credit for long-term unemployed veterans with service-connected disabilities, to up to $9,600. Signed into law in November 2011, the American Taxpayer Relief Act of 2012 extended the credits through this year.

On April 5, President Obama addressed their expiration by including a permanent provision for them in his FY2014 Budget. Information released by The White House Blog by Denis McDonough, Chief of Staff to President Obama, and Gene Sperling, Director of the National Economic Council and Assistant to the President for Economic Policy, indicates that there has been a near doubling of the number of veterans hired through tax credits in 2012 when compared to the previous year. McDonough and Sperling call these tax credits “a critical tool to spur more robust hiring of some of our nation’s most skilled workers.”

The last few years have brought about many initiatives aimed at facilitating veterans’ transition to the civilian workplace, and a permanent tax credit for hiring veterans would be yet another in a long list of reasons why companies should seek out veterans for their open positions. From the technical, leadership, and operational skills inherent in veterans, to the non-tangible skills like integrity, teamwork, and efficiency, companies who hire veterans are not just availing themselves of a tax credit, but adding a valued employee to their team.

To learn more about these tax credits, click here.

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