WASHINGTON — A program that provides tax credits for companies that hire veterans has been extended as part of the year-end “fiscal cliff” agreements.
U.S. Sen. Charles Schumer said the Returning Heroes and Wounded Warrior Tax Credits are now in place through 2013.
The program, enacted in November 2011, provides tax breaks to employers of up to $9,600, depending on the length of time a veteran has been unemployed and if that veteran has a service-connected disability.
Schumer was among those who fought to include these credits in the Senate tax-extender package that was drafted by the Senate Finance Committee earlier this fall and this week announced his success in extending the tax credits through 2013.
“There are far too many veterans in New York and across the country without jobs, and these tax credits for businesses to hire veterans are a proven remedy in addressing that unfortunate truth,” he said in a statement.
“Had the Returning Heroes and Wounded Warrior Tax Credits been allowed to expire, New York businesses and veterans alike would have lost a critical tool in getting smart and talented veterans to work.
“After veterans sacrifice their lives and spend months or years away from their families, they deserve the utmost respect and, at the very least, a paycheck. The Returning Heroes and Wounded Warriors Tax Credits will do just that, and I’m proud to have fought for their continued existence.”
President Barack Obama signed the Returning Heroes and Wounded Warriors Tax Credits into law on Nov. 21, 2011, as part of the Vow to Hire Heroes Act, which contained a series of tax credits for businesses that hire out-of-work veterans.
Businesses can claim a work opportunity tax credit for hiring qualified veterans in certain targeted groups and up to specific credit amounts:
▶ Businesses that hire veterans who have been searching for work for at least four weeks but less than six months are eligible for a tax credit of up to $2,400 per veteran hired.
▶ Businesses that bring aboard a service-related disabled veteran discharged from active duty within a year are eligible for a tax credit of up to $4,800.
▶ Businesses that hire a vet who has been looking for a job for at least six months receive a tax credit worth up to $5,600.
▶ Businesses that hire a veteran who has been seeking work for at least six months and has a service-related disability are eligible for a $9,600 tax credit.
While tax-exempt organizations realize a slightly smaller credit, a nonprofit company can still save up to $6,240 if it hires a disabled veteran who has been unemployed for six months or more.