Congress Enacts Returning Heroes and Wounded Warrior Tax Credits

Congress Enacts Returning Heroes and Wounded Warrior Tax Credits

November, 2011

Congress Enacts Returning Heroes and Wounded Warrior Tax Credits

On November 21, 2011, the President signed into law two new tax credits:

  • 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 4 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 6 months.
  • The Wounded Warrior Tax Credit will double the existing tax credit for long-term unemployed veterans with service-connected disabilities.
    • Maintain 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 6 months.

This is the latest of a series of executive actions to help get veterans back to work. Paradigm’s Hiring & Location Incentives Division will be working closely with clients to take full advantage of this incentive and help our veterans find new employment… find out more