New WOTC Veteran Eligibility Proposal – Veteran Employment Transition Act of 2013
Senate Finance Committee Chairman Max Baucus (D-Mont.) proposed, with co-sponsorship by Senator Jon Tester (D-Mont.), the Veteran Employment Transition Act of 2013 (full text here). This proposed legislation would create a Work Opportunity Tax Credit (WOTC) of up to $2,400 for hiring any military veteran within five years of their discharge date. Further, as serving in the military, including the National Guard, is all that is needed to capture this credit, the employer only needs to have a copy of the employee’s military discharge papers (DD 214) to capture this credit – no certification by the State Workforce Agencies (SWA) would be required. This is remarkable as, until now, the veteran eligibility categories of WOTC have always required that the individual being certified have some sort of qualification in addition to having served in the military – for example having been unemployed, or in receipt of support for a service connected disability. Without needing to wait for the SWA’s to certify an individual as eligible, employers can now identify and hire WOTC eligible veterans readily, and can expeditiously make use of the tax credit to offset federal tax liability.
Speaking on the need for this veteran specific WOTC credit, Mr. Baucus said:
“This bill will be a big boost for veterans of Iraq and Afghanistan, making it easier for business owners in Montana and across the country to fill job openings with hard-working vets. Our veterans are intelligent, qualified and proven leaders, and this is our chance to fight for them on the home front.”
Currently, this legislation is in the proposal phase and has not been signed into law. Equifax will monitor this legislation as it passes through the legislative process.
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