Staff and wire reports
Wednesday, November 23, 2011 —
RALEIGH – Gov. Bev Perdue today urged North Carolina employers to help unemployed veterans get back to work by taking advantage of a new federal tax credit for hiring veterans of the Armed Forces.
“This is a win for everybody,” Gov. Perdue said. “Veterans, who have supported us in times of need, get jobs; and businesses receive tax breaks and the benefit of new employees who are highly skilled, thanks to their military service. Nationally, post 9/11 veterans face higher unemployment rates than civilians. With so many military bases located here, and more service members coming home by year’s end, the timing of this incentive to employ veterans could not be better.”
President Obama this week signed into law new tax credits for businesses that hire veterans as part of the American Jobs Act. According to a White House statement, the Returning Heroes Tax Credit provides businesses that hire unemployed veterans with a maximum credit of $5,600 per veteran, and the Wounded Warriors Tax Credit offers businesses that hire veterans with service-connected disabilities with a maximum credit of $9,600 per veteran.
Community-based District Service Officers are being briefed on the new credits in order to assist veterans and business owners, said Tim Wipperman, Director of the N.C. Division of Veterans Affairs. To find a local office, visit http://www.doa.nc.gov/vets/locations/ or call 919-807-4250. Information also will be available from the Employment Security Commission by visiting https://www.ncesc.com/default.aspx.
The new tax credits replace a Recovery Act program that expired in 2010. Details include:
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.
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 six months.