Returning Heroes and Wounded Warrior Tax Credits
On November 21, 2011, two taxcredits were included in the American Jobs Act and signed into law by President Obama:
The Returning Heroes Tax Credit is a new hiring tax credit that will provide an incentive for businesses to hire unemployed veterans.
- Short-term unemployed: A new credit of 40 percent of the first $6,000 of wages (up to $2,400) for employers who hire veterans who have been unemployed at least four weeks.
- Long-term unemployed: A new credit of 40 percent of the first $14,000 of wages (up to $5,600) for employers who hire veterans who have been unemployed longer than six months.
The Wounded Warrior Tax Credit will double the existing tax credit for long-term unemployed veterans with service-connected disabilities.
- Maintains the existing Work Opportunity Tax Credit for veterans with service-connected disabilities (currently the maximum is $4,800).
- A new credit of 40 percent of the first $24,000 of wages (up to $9,600) for firms that hire veterans with service-connected disabilities who have been unemployed longer than six months.
