By Gabrielle Pfafflin
President Obama today outlined a series of initiatives aimed at encouraging businesses to hire veterans who are re-entering the civilian sector.
In a brief speech to defense officials, as well as active and former servicemembers, on the grounds of the Washington Navy Yard, Obama proposed a pair of new tax credits, and challenged the private sector to hire 100,000 veterans or their spouses by the end of 2013.
The Returning Heroes Tax Credit, Obama said, incentivizes companies to hire formerly deployed service men and women by offering them a credit of up to “$2,400 for every short-term unemployed hire and $4,800 for every long-term unemployed hire” (information provided by the White House). The President also proposed increasing the Wounded Warriors Tax Credit, which offers up to $9,600 to businesses that hire veterans with a service-related disability and long term unemployment. Alongside that is another tax credit applicable to all other veterans who have incurred a service-related disability up to $4,800.
As of June, over 13.3% of returning veterans were unemployed, a result of inadequate preparation to re-enter the workforce, and an already depressed economy. Obama said that he hopes the increase in tax incentives, better transitional training, as well as career guidance diminishes the unemployment rate among returning veterans.
Obama added that he is instructing the Defense Department to create a “reverse boot camp” for veterans in need of help transitioning to civilian life.
“Over the last few years, another generation of young veterans has learned that the challenges do not end in Kandahar or Baghdad, they continue right here at home,” Obama said. “Today we’re saying to our veterans, you fought for us. Now we’re fighting for you.”
For more information on the tax credits, please click HERE.