Work Opportunity Tax Credit now includes veterans

New legislation signed by President Barack Obama in November expands tax incentives to businesses that hire military veterans. The new law enhances the Work Opportunity Tax Credits for hiring qualified veterans. The credit available depends on the length of time the veteran was out of work:

• New hires that were jobless for at least six months are eligible for a credit of up to $5,600;
• New hires that were jobless for less than six months are eligible for a credit of up to $2,400; and
• New hires with service-connected disabilities that were jobless for more than six months can receive a credit of up to $9,600.

A veteran is an individual who is certified as having either served on active duty in the U.S. Armed Forces for more than 180 days or else has been discharged or released from active duty for a service-connected disability. These credits only apply to newly hired veterans who began working after Nov. 21, 2011, but prior to Jan. 1, 2013. Note that the new law does not extend the Work Opportunity tax Credits for other targeted groups. It remains to be seen if they will be extended.