President Obama signed a new law providing a tax credit to employers who hire military veterans. Named the “VOW to Hire Heroes Act,” it was designed to help the approximately 240,000 veterans of the wars in Iraq and Afghanistan who remain unemployed, according to White House records, while the administration reports a total of 850,000 veterans overall are out of work. President Obama commented: “No veteran who fought for our nation should have to fight for a job when they come home.”
Under this new law, a company can claim a tax credit of up to $2,400 if it hires veterans who have been looking for work for at least one month with a maximum credit increased to $5,600 for hiring veterans who have been searching for work at least six months. Additional employer tax credits of $9,600 will be granted for hiring unemployed veterans with service-related disabilities. The new legislation also provides for veteran job training. The prior law, which was the Work Opportunity Tax Credit (WOTC), is scheduled to expire after December 31, 2011.