Among other things, the fiscal cliff deal reached earlier this week extends the Returning Heroes and Wounded Warriors work opportunity tax credits through 2013.
The original 2011 VOW Act tax credits 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.
The work opportunity tax credit (WOTC) offers specific credits for hiring veterans in the following targeted groups:
- 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 hire a Service-related disabled veterans discharged from active duty within a year: $4,800
- Businesses that hire a veteran who has been looking for a job for at least six months receive a tax credit worth up to $5,600.
- Business that hire a veteran who has been seeking work for at least six months and has a service-related disability is eligible for a $9,600 tax credit.