Franken, Klobuchar announce veteran tax credit

A new tax credit is available to Minnesota employers who hire veterans, according to U.S. Sens. Al Franken and Amy Klobuchar.

The credit can be as high as $9,600 per veteran for for-profit employers or up to $6,240 for tax-exempt organizations.

"With the unemployment rate for Minnesota's post-9/11 veterans at three times the state average, we have to do everything we can to create jobs for them after their service is done," said Franken. "This tax credit will help create opportunities to put our veterans back to work by providing an incentive for Minnesota businesses to hire them. I challenge every employer to recognize the invaluable skills and training that our veterans offer."

 Employers who hire veterans who have been unemployed for more than six months are eligible for a new tax credit of up to $5,600 per veteran hired; if the veteran has been unemployed for between four weeks and six months, the employer's tax credit is up to $2,400. Employers who hire veterans with service-related disabilities may be eligible for the maximum credit of $9,600, which is an expansion of the Work Opportunity Tax Credit.

The new tax credits and the expansion of the WOTC were passed as part of the VOW to Hire Heroes Act of 2011, which was enacted last November.

Klobuchar has recently introduced two bills to help returning veterans use the skills they have acquired in the military to get good jobs. In February, she introduced bipartisan legislation with Sen. Olympia Snowe, that would streamline the process of receiving a Commercial Driver’s License for veterans with the requisite driving experience from their military service. Last year, she also introduced bipartisan legislation with Sen. Mike Enzi that would streamline civilian paramedic training for veterans who already have emergency medical experience as the result of their military service, making it easier for them to secure jobs as civilian paramedics.

 “Our men and women in uniform demonstrate leadership, courage, and skill under pressure every day defending our country, and they should be able to use this experience in the workplace when they come home.” Klobuchar said. “This tax credit gives Minnesota businesses one more reason to hire our veterans, and I will continue to work to ensure that our soldiers can use their skills learned in the military to secure good jobs at home.”