Up to $9,600 in Federal Tax Credits Now Available to Companies That Hire Veterans

NEW Tax Credit for Hiring Veterans

On December 21, 2011, President Obama signed into law the VOW to Hire Heroes Act of 2011. This Act expands the veterans who qualify under the Work Opportunity Tax Credit. It also extends tax credits up to $9,600 to businesses that hire vets.

What is a Work Opportunity Tax Credit (WOTC)?
The WOTC encourages businesses to hire people from certain groups. Businesses that hire veterans who qualify under the VOW to Hire Heroes Act can receive a federal tax credit up to:

• $9,600 for hiring veterans with service-connected disabilities who have been looking for a job for more than six months
• $5,600 for hiring veterans who have been looking for a job for more than six months
• $2,400 for hiring veterans who have been unemployed from one to six months

How to Apply for Credit
To use the expanded WOTC credits offered under the VOW to Hire Heroes Act, a job seeker and business both must fill out a Pre-Screening Notice (IRS Form 8850) on or before the hire date. To find the forms, look for "Work Opportunity Tax Credit" in the "Businesses" section of http://www.labor.ny.gov/.

The Department of Labor must receive the completed and signed Pre-Screening Notice within 28 days of the first date of work.