- Home
- Employers
- Hiring Veterans
- Tax Benefits for Employers
Tax Benefits for Employers
Tax Benefits for Employers
Federal tax benefits may be available to employers that hire veterans under the Work Opportunity Tax Credit (WOTC). Employers can receive up to a $9,600 tax credit by hiring a veteran. Tax credits currently are available for hires in the following categories of veterans:
| WOTC Target Group | Maximum Tax Credit |
|---|---|
| Disabled veterans with a service-connected disability who have been unemployed for at least 6 months | $9,600 |
| Veterans who have been unemployed for at least 6 months | $5,600 |
| Disabled veterans with a service-connected disability | $4,800 |
| Veterans receiving Supplemental Nutrition Assistance Program (SNAP) benefits | $2,400 |
| Veterans who have been unemployed for at least 4 weeks | $2,400 |
Employers also can receive tax credits by hiring individuals from one of several non-veteran target groups. For more information, see Work Opportunity Tax Credit.
Employers hiring multiple WOTC-qualified employees can see a significant reduction in their federal income taxes. These benefits are explained and claimed on IRS Form 5884.
Another program that might benefit employers is the U.S. Department of Defense Mentor-Protégé Program, which allows certain government contractors to receive reimbursements for training or incidental costs associated with training physically-challenged veterans.