Federal tax benefits may be available to employers that hire veterans under the Work Opportunity Tax Credit (WOTC). Employers can receive up to a $9,600 tax credit by hiring a veteran. Tax credits currently are available for hires in the following categories of veterans:
|WOTC Target Group||Maximum Tax Credit|
|Disabled veterans with a service-connected disability who have been unemployed for at least 6 months||$9,600|
|Veterans who have been unemployed for at least 6 months||$5,600|
|Disabled veterans with a service-connected disability||$4,800|
|Veterans receiving Supplemental Nutrition Assistance Program (SNAP) benefits||$2,400|
|Veterans who have been unemployed for at least 4 weeks||$2,400|
Employers also can receive tax credits by hiring individuals from one of several non-veteran target groups. For more information, see Work Opportunity Tax Credit.
Employers hiring multiple WOTC-qualified employees can see a significant reduction in their federal income taxes. These benefits are explained and claimed on IRS Form 5884.
Another program that might benefit employers is the U.S. Department of Defense Mentor-Protégé Program, which allows certain government contractors to receive reimbursements for training or incidental costs associated with training physically-challenged veterans.
Source: Texas Workforce CommissionAdd to my Notebook