WILMINGTON – Today, Sen. Tom Carper, (D-Del.) highlighted key tax credits available to Delaware businesses who hire veterans. The VOW to Hire Heroes Act of 2011, enacted last November, expanded the Work Opportunity Tax Credit for businesses and certain tax-exempt organizations that hire eligible unemployed veterans.
"This tax credit will help put Delaware's veterans back to work," said Sen. Tom Carper, a retired Naval flight captain. "As a veteran, I know the sacrifices our service members make by defending our nation. That is why incentives like this one that encourage businesses to employ our veterans are one way we can support them and thank them for their service."
The tax credit can be as high as $9,600 per qualified veteran for for-profit employers or up to $6,240 for qualified tax-exempt organizations. The amount of the credit will also depend on a number of factors, including the length of the veteran's unemployment before hire, the number of hours the veteran works, and the veteran's first-year wages. Employers who hire veterans with service-related disabilities may be eligible for the maximum credit. The law allows employers one tax credit per eligible veteran hired.
The IRS has recently released the guidance and forms that employers can use to claim the newly-expanded tax credit for hiring veterans. For more information, including forms and filing deadlines, go to www.irs.gov/businesses/small/article/0,,id=253949,00.html.