The Work Opportunity Tax Credit was established in the VOW to Hire Heroes Act of 2011 as an incentive for employers to hire qualified military veterans. It’s set to expire on Dec 31, 2012 unless Congress does something to change that in the next few weeks.
But employers can still take advantage of the program as long as the veteran starts working before the end of the year. They then have 28 days to submit Form 8850, Pre-Screening Notice and Certification Request with their state workforce agency.
The maximum tax credit is $9,600 for businesses that are for profit and $6,240 for non-profit businesses. The amount of the credit depends on how long the vet was unemployed before being hired, the number of hours they are working, their 1st year wages and if the veteran is disabled. All the details can be found on the US Dept. of Labor website or check www.irs.gov and search for “WOTC”