Tax credits will be given to businesses that would hire veterans, according to a new regulation that was signed by President Barack Obama last November 21, 2011.
The “VOW to Hire Heroes Act,” a bicameral, comprehensive and bipartisan legislation that aims to lower the rate of unemployment among the country’s veterans, came into law last November 21 after it was signed by President Obama himself. The bill is a thorough jobs package that includes 5 initiatives which confront the current high rate of veteran unemployment: (1) expanding education training, (2) improving the transition assistance program or TAP, (3) facilitating seamless transition, (4) translating military skills and training, and its highlight, which are the (5) veterans tax credits.
In his announcement that morning when he signed the bill at the White House, the President gave extra importance to the fifth initiative, the tax credit laws. “In a jobs bill which I sent Congress last September, I proposed giving a tax credit to any business that would courageously hire a veteran who has been out of work for at least four months,” said President Obama. “I suggested an even larger tax incentive for any company that would hire a former serviceman who hasn’t been working for at least six months. And I proposed to double the tax break to any company that hires an unemployed disabled veteran.”
The jobs stimulus bill is part of the President’s “The American Jobs Act,” and is highly supported by the foodservice industry. The following incentives apply:
• A $2,400 tax credit is available to companies that employ veterans who had been out of work for at least four months,
• A tax credit of $5,600 shall be given to employers who sign up veterans who had been unemployed for up to six months,
• A tax credit of $9,600 is provided to businesses that employ veterans who have service-related disabilities and have been searching for a job in more than six months.
“The restaurant industry is one of a few number of industries which has thrived in the midst of the economic downturn, as we were able to provide quality jobs to our people who are often in their cool aprons, which eventually led to fulfilling careers,” said Scott DeFife, the National Restaurant Association’s executive vice president of policy and government. “The industry has always been supportive of our veterans, having provided them with wonderful opportunities for post-military management and culinary careers, as they wear elegant chef aprons, on top of possible ownership opportunities. The new tax incentive policies will allow us to support them more. Restaurants will be able to provide more jobs and better opportunities to a lot more of our countrymen.”
Steve Calderra, chief executive and president of the International Franchise Association also welcomes the new regulation, believing that the tax credits will further assist the franchise industry in its commitment to recruit and hire veterans as employees. “We also support the Franchise Education for Veterans Act, which enables veterans to look into franchising opportunities, utilizing as much as $15,000 of his GI bills for franchise training programs and franchise education,” he added.