By Rick Maze – Staff writer Military Times
Posted : Wednesday Jan 2, 2013 15:56:10 EST
The tax extender bill passed on New Year’s Day by Congress includes five work opportunity tax credits aimed at encouraging businesses to hire veterans.
Called the Returning Heroes and Wounded Warriors work opportunity tax credits, the programs pay between $2,400 and $9,600 to businesses who hire veterans.
President Obama has promised to sign the measure, and the Treasury Department says it is working on how to handle the tax-related provisions.
The tax credits are included in the same bill passed to avoid the so-called fiscal cliff that extends other income and business tax breaks and postpones for two months the across-the-board cuts that were supposed to be ordered Jan. 2 because Congress and the White House have not been able to agree on a $1.2 trillion deficit reduction package.
All five tax credits are extended for one year, until Dec. 31, 2013, by the American Taxpayer Relief Act, as are other non-veteran work opportunity tax credits.
Two of the tax credits are each worth $2,400. One is for veterans whose families are receiving supplemental nutrition assistance. The second is for short-term hiring of unemployed veterans.
Also extended are a $4,800 tax credit for hiring a veteran discharged within the previous year who has a service-connected disability; a $5,600 tax credit for hiring a veteran who has been unemployed for an extended period; and a $9,600 tax credit for hiring a service-disabled veteran who has been unemployed for an extended period.