The Vow to Hire Heroes Act signed into law at the White House in November with the help of VetFran leaders Greg Tanner of Aaron’s, David Nilssen of Guidant Financial, and IFA President & CEO Steve Caldeira, is spurring franchisors, franchisees and suppliers to develop new hiring strategies for 2012 to do the right thing for the nation as well as strengthen the franchise industry.
The tax credits, ranging from $2,400 – $9,600 per veteran hired, depending on whether the service member has a disability and how long he/she has been unemployed, are another reason to act. It’s important to plan now to be able to maximize the benefit of this major tax incentive.
According to the latest news from IFA 2012 Convention Exhibitor Lisa Rosser of The Value of a Veteran, there are other things you need to know:
- The credits expire at the end of 2012. Employers may take the credit for any qualified veterans hired between November 22, 2011 and December 31, 2012.
- There is no time limit associated to when the veteran left the service. Previous versions of veteran-related tax credits stipulated that the veteran had to have been separated/retired from the service within the last 5 years in order to qualify. This is not a stipulation for this latest version, so if you are considering hiring a veteran who left the service 10+ years ago and who has been unemployed more than 4 weeks, you can receive a tax credit for the hire.
- Qualified tax exempt (i.e., 501(c)) organizations may now claim the credit by hiring veterans.
- There is no limit to the number of qualified veterans you can hire and claim the credit.
- The IRS allows a company to carry the credit back 1 year or forward 20 years — this could be particularly attractive for small businesses.
Meet Lisa Rosser and veterans at the IFA Convention in Orlando at the first-ever VetFran Pavilion to find out more about how companies are recruiting veterans, and visit The Value of a Veteran, which offers free “Ask the Military Recruiting Expert” sessions Jan. 10 and Jan. 23. Click here to sign up for a free consultation.
Posted by Beth Solomon, IFA Vice President of Strategic Initiatives & Industry Relations