Bill would ease tax credit for hiring vets - Military News | News From Afghanistan, Iraq And Around The World - Military Times

Bill would ease tax credit for hiring vets

Legislation that would expand tax incentives to encourage businesses to hire recently discharged veterans was unveiled Monday by the Democratic chairman and Republican ranking member of the Senate Finance Committee.

Their ideas are not new — a $6,000 tax credit for employers who hire any qualified and recently discharged veteran, and elimination of administrative burdens that make it difficult for small businesses to use this type of tax credit. A similar benefit already is available, but with administrative hurdles attached that make it difficult to use.

What makes this bill important is that the sponsors — Sens. Max Baucus, D-Mt., and Charles Grassley, R-Iowa — are the two senators with the most influence over tax-related legislation. Their support sets the stage for the initiative, called the Veterans Employment Transition Act, to pass the Senate either as a separate measure or part of a larger package of tax-related legislation.

Iraq and Afghanistan Veterans of American helped craft the amendment, according to Baucus’ office.

In a joint statement, the two senators said their bill would require the Defense Department to “educate” separating service members on how tax credits could be used by potential employers who hire them. Also, people leaving the military would receive discharge paperwork showing that, for 180 days from separation, a business that hires them could get the tax credit.

“No veteran returning home from service and looking for work should be greeted with an unemployment check instead of a job,” Baucus said. “This tax cut will help create new job opportunities for veterans by giving employers incentives to do the right thing and offer our veterans a job.”

Introduction of their bill comes after a slight improvement in the unemployment rate for Iraq and Afghanistan-era veterans. The Labor Department reported the unemployment rate for April was 13.1 percent for recently separated veterans, down from 14.7 percent in March.