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Boots to Suits

Boots to Suits, University of Colorado Denver
 

Facts on Tax Breaks

Get the facts on returning heroes and wounded warrior tax credits.


In August, President Obama called on Congress to enact tax credits that will help get veterans back to work. The Returning Heroes Tax Credit provides businesses that hire unemployed veterans with a maximum credit of $5,600 per veteran, and the Wounded Warriors Tax Credit offers businesses that hire veterans with service-connected disabilities with a maximum credit of $9,600 per veteran.

These tax credits were included in the American Jobs Act and were signed into law by President Obama on Nov. 21, 2011.

Returning Heroes and Wounded Warrior Tax Credits

  • The Returning Heroes Tax Credit is a new hiring tax credit that will provide an incentive for businesses to hire unemployed veterans.
    • Short-term unemployed: A new credit of 40 percent of the first $6,000 of wages (up to $2,400) for employers who hire veterans who have been unemployed at least 4 weeks.
    • Long-term unemployed: A new credit of 40 percent of the first $14,000 of wages (up to $5,600) for employers who hire veterans who have been unemployed longer than 6 months.
  • The Wounded Warrior Tax Credit will double the existing tax credit for long-term unemployed veterans with service-connected disabilities.
    • Maintain the existing Work Opportunity Tax Credit for veterans with service-connected disabilities (currently the maximum is $4,800).
    • A new credit of 40 percent of the first $24,000 of wages (up to $9,600) for firms that hire veterans with service-connected disabilities who have been unemployed longer than 6 months. 


How to apply for Returning Heroes and Wounded Warrior Tax Credits

For the latest information on how your business can apply for these tax credits, visit the Work Opportunity Tax Credit information from the U.S. Department of Labor.

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